Letter to BS: Sebi may order forensic audit on half a dozen companies

This refers to “Sebi may order forensic audit on half a dozen companies” (October 13). Forensic audit is required when the regulator suspects inadequate or faulty disclosures with regards to actual performance and market value of shares on a consistent basis in relation to other general market indicators. Further, the inexplicable rise or fall in share value of some companies in relation to others in the stock market leaves scope for suspicion. The surveillance wing of the Securities and Exchange Board of India follows up the annual statutory audit of major firms that repeatedly conceal information or provide inadequate feedback