Auditors should be vigilant and have the courage to ask difficult questions while refusing to walk away, which will help detect anomalies early on, capital market regulator Sebi’s chairman Tuhin Kanta Pandey said on August 1 at an event hosted by the Institute of Chartered Accountants of India (ICAI)
"It is your vigilance, your courage to ask difficult questions and your refusal to look away that will ensure our markets continue to command global trust. The future of financial governance will be determined by our collective ability to anticipate risks and detect anomalies early on. Forensic accounting should not be treated as a post-fraud tool only," said Pandey.
Tuhin Kanta added that Sebi has used forensic audits to uncover various financial frauds.
"The negative impact of financial frauds on the securities market is tremendous... They erode investor confidence, discourage genuine investment, and directly undermine market integrity. As professionals connected with the securities market, I want you to think about the future of our markets," Sebi chairman added while highlighting that ICAI too is working on developing an actionable framework towards preventing financial fraud in the securities market.
Tuhin Kanta further said the Sebi has employed various measures - ranging from regulatory interventions to enforcement actions - to rein in unethical behaviour and practices.
"We have focused on capacity building both internally and externally. Going forward, our sustained focus will be to increase the level of investor awareness towards such frauds," he said.
Sebi chief said India continues to dominate the global markets in terms of primary market fund raising, and maintaining transparency and governance is even more important now.
"As custodians of this trust, we must safeguard market integrity, the foundation that fuels investor participation and sustains capital formation," he said.
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