In July, Sebi had posted a consultative paper on the subject amid growing instances of statutory auditors resigning from listed companies, while some came under the scanner in connection with alleged financial irregularities at firms. Telegraph file pictureThe Securities and Exchange Board of India (Sebi) has tightened rules for the resignation of statutory auditors from listed companies or their material subsidiaries. In a circular on Friday, the market regulator said prompt disclosures should be made about the reasons for the resignation. In such cases, the latter should receive such concern directly and immediately without waiting for the quarterly audit committee meetings. Sebi feels if an auditor resigns before completing the audit of the financial results for the year because of reasons such as pre-occupation, it may hamper investor confidence and deny them access to reliable information for taking investment decisions.

Source: The Telegraph October 19, 2019 19:07 UTC