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Richa Mishra

NEW DELHI, April 7

THE recent spate of white-collared frauds has pointed fingers at the company-auditor nexus. In order to combat any such professional misconduct of its members, the Institute of Company Secretaries of India (ICSI) has spruced up its disciplinary mechanism.

The three-member Disciplinary Committee comprises the President, a Government nominee and a Council Member. To assist the Committee a separate section has now been set up within the institute that will examine the complaints received. In order to ensure that a fair picture is projected to the Committee before it initiates any action, one council member not related to the region from where the complaint has been received will also examine the case, Mr Pavan Kumar Vijay, President of ICSI, said. This appointment will be done directly by the President of the Institute.

"Though we have a very few cases of misconduct, the Institute wants to ensure that it has a proper system in place to take quick action," the President said. Currently there are only four or five cases pending with the Disciplinary Committee of which two are old cases, he told Business Line. Besides, the entire procedure now being adopted will reduce the time taken, the President said.

"We have proposed in our recommendations for amendment to the Company Secretaries Act, 1980, submitted to the Department of Company Affairs (DCA) that the time taken in the whole disciplinary process can be reduced by constituting benches when needed at the regional offices of the Institute," he said.

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