Sebi proposes tighter disclosure on auditor resignation

Markets regulator Sebi Thursday proposed stricter disclosures, including detailed reasons, on resignation of auditors, amid rising instances of auditors quitting companies. Besides, an auditor would have to provide appropriate disclaimer in case of auditor's resignation is due to non-receipt of information from the company concerned. The regulator also proposed to further strengthen and clarify the role of audit committees of the listed firms. Sebi came out with proposals as it found that resignation of an auditor before completion of the audit of financial results for the year hampers investor confidence and leaves investors with lack of reliable information for making their financial decisions.