Audit companies get a breather on FDI front from SC-appointed committee

The report by the SC-appointed committee would help clear the confusion over a grant received by an Indian audit firm from its overseas network

With a Supreme Court appointed committee giving the green signal to audit companies to use global brand names in India, the stage is set for more such networks to set up shop in the country.

The committee found that the audit companies, which use foreign brand names, are owned by Indian partners. These firms give (approx) 0.7 per cent of their revenue as "network fees" to the foreign trusts that own the brand name used globally. The SC had set up a committee after a litigant raised questions over foreign direct investment (FDI) received by Price Waterhouse in India.

The report