Powers of SEBI vis-a-vis CAs - So far as listed companies are concerned, SEBI has all powers under Act and Regulations to take all remedial and protective measures to safeguard interest of investors and securities market - Price Waterhouse & Co. v. Securities and Exchange Board of India [2010] 103 SCL 96 (BOM.) [WRIT PETITION NOS. 5249 AND 5256 OF 2010]
If it is unearthed during inquiry before SEBI that a particular chartered accountant, in connivance and in collusion with officers/directors of company, has concocted false accounts, such a person can be prevented from dealing with auditing of such a public listed company to protect interests of investors and to regulate securities market - Price Waterhouse & Co. v. Securities and Exchange Board of India [2010] 103 SCL 96 (BOM.) [WRIT PETITION NOS. 5249 AND 5256 OF 2010]
SEBI can take appropriate remedial steps which may include keeping a person including a chartered accountant at a safe distance from securities market and while exercising such powers, it cannot be said to be in any way in conflict with powers of ICAI under Chartered Accountants Act - Price Waterhouse & Co. v. Securities and Exchange Board of India [2010] 103 SCL 96 (BOM.) [WRIT PETITION NOS. 5249 AND 5256 OF 2010]
Therefore, SEBI has power to hold inquiry and issue show-cause notices to chartered accountants in connection with work which they have undertaken for a listed company in matter of maintaining accounts and balance-sheets - Price Waterhouse & Co. v. Securities and Exchange Board of India [2010] 103 SCL 96 (BOM.) [WRIT PETITION NOS. 5249 AND 5256 OF 2010]
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