The Securities and Exchange Board of India (SEBI) has banned Price Waterhouse (PW) from auditing listed companies in the country for a period of two years after conducting an investigation into nine-year-old Satyam fraud case.
“Any entities or firms practicing as chartered accountants in India under the brand and banner of PW, shall not directly or indirectly issue any certificate of audit of listed companies, or their intermediaries that are registered with the regulator for a period of two years,” SEBI in the order said.
The order further said that the network structure of operations adopted by the international accounting firm should not be used as a shield to avoid legal implications arising out of the certifications issued under the brand name of the network.
Reacting to the ban, Price Waterhouse in a press release said that the SEBI order relates to a fraud that took place nearly a decade ago in which the company played no part and had no knowledge of.
“There has been no intentional wrong doing by PW firms in the unprecedented management perpetrated fraud at Satyam, nor have we seen any material evidence to the contrary,” Price Waterhouse said.