The Securities and Exchange Board of India (SEBI) on Wednesday prohibited PricewaterhouseCoopers (PwC) from auditing listed companies in the country for two years after an investigation into a case of old accounting fraud nearly a decade into a software services company. has become the biggest corporate scandal in India.
Ramalinga Raju, founder and former president of Satyam Computer Services, a former software exporter, surprised Indian markets and investors in January 2009, when he admitted that the company had overestimated its profits and its profits. assets for several years, in a fraud of over $ 1 billion, sometimes called "Enron of India".
PwC was the auditor of Satyam during the period when the fraud was committed.
In his order, the SEBI, said Wednesday that all entities or companies carrying on business as chartered accountants in India under the PwC brand and banner, must not directly or indirectly issue an audit certificate listed companies, or their intermediaries registered with the regulator for a period of two years.
"The structure of network operations adopted by the international accounting firm should not serve as a shield to avoid the legal implications arising from certifications issued under the network brand," said SEBI in an order of 108 pages.
In India, all auditing functions within the group are conducted under the PwC brand, with a network of local businesses operating under the banner. The PwC entity at large is engaged in consulting, tax consulting and other activities.