The Hindu Business Line : To streamline disciplinary mechanism — 3 separate Bills introduced for professional institutes

THE Government has gone a step closer towards overhauling the disciplinary procedures governing the members of the three professional institutes — the Institute of Chartered Accountants of India (ICAI), Institute of Cost & Works Accountants (ICWAI) and the Institute of Company Secretaries of India (ICSI).

The Union Finance Minister, Mr Jaswant Singh, on Tuesday introduced three separate Bills in the Rajya Sabha that seek to, among other things, provide for the appointment of a prosecution director each in the three institutes to hasten the disciplinary process.

The Bills also prescribe for the establishment of a quality review board (QRB) and constitution of separate appellate authorities to deal with appeals against the orders of the respective councils.

They also seek to increase the term of the three councils from three to four years, streamline the election process and prescribe certain restrictions with regard to eligibility of members for contesting elections for the council of the respective institutes.

Once the Bills are passed, the institutes would be empowered to constitute more than one disciplinary committee to enable disposal of disciplinary cases.

The prosecution director, who will make enquiries in respect of any information or complaint received under the provisions of three Acts, will enjoy the powers vested in a civil court in respect of summoning and enforcing the attendance of any person, the discovery and production of any document and receiving evidence and affidavit.

The Bills have also outlined the actions that constitute professional misconduct in relation to professionals in practice, members of the institute in service, and members of the institute generally.

Sources said, "The objective of the three Bills is to bring in uniformity the disciplinary mechanism and other functions of these professional bodies."

It may be recalled that the Joint Parliamentary Committee (JPC) examining the stock market scam of March 2001 had adversely commented on the slow disciplinary procedure for the erring members of the ICAI.

A high-level committee under the chairmanship of former Cabinet Secretary, Mr Naresh Chandra, was set up to examine the auditor-company relationship and disciplinary mechanism for the auditors.

In fact, the concept of quality review board was suggested by the Naresh Chandra Committee.

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