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Monetary fines good idea for those who fail to do their duty


It is, of course, true that the directors of firms also need to be punished—in the case of IL&FS, even as its debt rose from Rs 49,000 crore to Rs 91,000 crore in four years, its risk management committee hardly met or flagged the issue.

As a general rule, monetary fines are preferable to outright bans; to that extent, a committee under corporate affairs secretary Injeti Srinivas is right to recommend monetary fines on auditors. The bans, the committee feels, should only be done if it is proved the audit firm was obstructing justice. But, if this ...


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