NDTV to file appeal against Sebi order imposing Rs 12 lakh fine for disclosure lapses
NDTV to file appeal against Sebi order imposing Rs 12 lakh fine for disclosure lapses

New Delhi: With an aim to unearth financial irregularities and other fraudulent transactions at listed companies, capital market regulator Securities and Exchange Board of India (Sebi) is planning to set up a new whistle-blower mechanism for auditors and other 'gate-keepers' to report such cases.

The proposed move assumes significance in the wake of several auditors in the recent past decided to exit from their audit mandate after certain listed companies failed to take remedial actions despite financial wrongdoings having been flagged in their auditors' observations.

Officials said most of these auditor exits have taken place at a much later stage, but a 'confidentiality mechanism' can help in cases of financial frauds being reported at an early stage by auditors, independent directors and others considered to be 'gate-keepers' or 'conscience keepers'.

Regulators and enforcement agencies have often stressed that auditors, independent directors, investment bankers, valuers and other such entities have a greater responsibility to ensure compliance to regulations and safeguard the interest by minority shareholders.

(To view our epaper please click here. For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal

www.freepressjournal.in