In November, the Supreme Court stayed a SAT order which had held that Sebi
does not have the power to bar auditors.
"Our position is very simple -- if they're auditing listed companies based on which investors are investing, and if we find that that work has not been done properly and in investors' interest, some audit firms should not be allowed to audit for sometime of the listed companies," Tyagi said at an event here.
"It is our parliamentary mandate I would say to see that it is done and there is no trouble there. It goes to the basic issue of investor protection being the parliamentary mandate of Sebi," he noted.
According to Tyagi, audit firms are important gatekeepers who help companies put out results and financial performance to the stock exchanges, based on which investors take the call whether to invest or not.
"It is not our case that Sebi is the agency which registers or regulates the auditors. It is nothing like that... We are not de-registering auditors. We don't have the authority and we don't wish to have that authority,” he said.
He also made it clear that Sebi's expectation is that faulty audits should not lead to inflated profits or dividends.
Regarding IPO market, Tyagi said there has been an improvement in activities lately and that nearly a dozen issues of over Rs 15,000 crore are in the pipeline.
The regulator has given its wishlist for the budget to the finance ministry, includes ways to increase the activities in the corporate bond market, he said.