Investment banks carrying out prelisting due diligence in many companies have told capital market regulator Sebi that auditors of these firms are holding back key information from them. Several auditors have refused to provide tax benefit statements, documents supporting end-use of IPO proceeds, and project-funding details on the grounds that sharing such information is beyond their scope of assignment. Since such crucial data can significantly influence investment decisions, the matter was discussed at a recent meeting of the Sebi Committee on Disclosures and Accounting Standards, said a person familiar with the development. The 17-member committee comprising senior professionals is headed by Ishaat Hussain, finance director at Tata Sons.
Source: Economic Times
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