SEBI not competent to take action against CA for lack of Due Diligence

Mani Oommen Vs SEBI (Securities Appellate Tribunal) SAT held that once the appellant is not found responsible for the preparation of the financials of the company merely because he was not cautious or did not carry out due diligence properly will not suggest that the appellant colluded with the promoters and the directors of the company. This finding of conclusion, in our opinion, is based on surmises and conjectures and is against the specific finding given by the WTM, namely, that the understatement was specifically designed and carried out by the promoters and the directors of the company. ...