The Securities and Exchange Board of India (SEBI) issued a circular on 18 October 2019 to lay new requirements in case of resignation by a statutory auditor of a listed entity or its material subsidiary.
The Securities and Exchange Board of India (SEBI) issued a circular on 18 October 2019 to lay new requirements in case of resignation by a statutory auditor of a listed entity or its material subsidiary. The circular issued by SEBI comes into an immediate effect.
The circular covers the following aspects to be complied with by listed entity/its material subsidiary:
||Aspects covered in the circular to be complied with by listed entity/ its material subsidiary
|1.||Conditions to be complied with while appointing/re-appointing an auditor|
|2.||Procedure to be followed in relation to resignation by auditors|
|3.||Obligations of a listed entity and its material subsidiary|
SEBI has also clarified that in case the auditor is rendered disqualified due to operation of any condition mentioned in Section 141 of the 2013 Act, then the provisions of this circular would not apply.
This edition of First Notes summarises the key aspects of this circular.
To access the text of the SEBI circular, please click here.
© 2019 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.