Any ban on audit firms may not impact those entities that are part of their networks or their lead partners, a senior government official said. This implies that disruption from a possible prohibition on Deloitte Haskins & Sells and BSR & Co, a KPMG network firm, may not be as widespread as earlier presumed. 
On the other hand, the government is set to tighten restrictions on audit firms to minimise conflicts of interest, the official said. These will apply to non-audit services offered to the companies they’re auditing, he said. Earlier, this month, the Reserve Bank of India had barred audit firm SR Batliboi & Co, an EY member firm, from auditing commercial banks for a year starting April 1, citing lapses in a statutory audit.