'Web firms not being under Companies Act a concern'
Sreedharan said that such instances have cheated the public in the past and managed to remain untraced. This is an issue that needs to be addressed, he said.
On the government tightening section 25 of the Act, he said that it was due to misuse of the section by certain companies. On the whole, he said that the focus on self-regulation, reducing number of approvals, were welcome from a business perspective.
On the role of auditors, he said that it is difficult to define “material fraud” as there is no index to indicate it.