In terms of the provisions of Section 21B3 of the Chartered Accountants Act, 1949 read with Rules

## Report on Notification Regarding Disciplinary Action by the Institute of Chartered Accountants of India **1. Executive Summary:** This report analyzes a notification issued by the Institute of Chartered Accountants of India (ICAI) regarding disciplinary action taken against one of its members, CA. Subrata De. The notification, dated December 16, 2022, announces the removal of CA. De's name from the Register of Members for a period of twenty-four months due to professional misconduct. The key finding is the enforcement of ethical standards within the Chartered Accountancy profession as demonstrated by the disciplinary actions and public notification. **2. Introduction:** This report aims to provide an informative overview of the notification issued by the ICAI concerning disciplinary action against one of its members. The analysis is based solely on the content of the provided notification text. **3. Policy Overview:** * This notification implements provisions within the Chartered Accountants Act, 1949 and associated rules and regulations related to disciplinary procedures. * **Core Objective (Inferred):** The core objective is to maintain the integrity and ethical standards of the Chartered Accountancy profession by enforcing disciplinary measures against members found guilty of professional misconduct, and to inform the public of such actions. **4. Background and Rationale:** * **Inferred Issue:** The notification suggests that there are mechanisms within the ICAI to address and rectify instances of professional misconduct among its members, thereby protecting the public interest and maintaining the profession's reputation. The notification itself serves as a form of transparency and accountability. **5. Key Provisions / Changes:** This is an enforcement notification following disciplinary proceedings, therefore, the provisions are related to the disciplinary actions. * **Specific part of Original Policy Implemented:** The notification specifically refers to Section 21B(3) of the Chartered Accountants Act, 1949, Rules 18(17) and 19(1) of the Chartered Accountants Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases Rules, 2007, and Regulation 18 of the Chartered Accountants Regulations 1988. * **New action:** The key action mandated is the removal of CA. Subrata De from the Register of Members for 24 months, effective December 16, 2022. * **Effect of this action:** CA. Subrata De is prohibited from practicing as a Chartered Accountant during this period and cannot represent themselves as a member of ICAI. **6. Target Audience and Stakeholders:** Based on the provided text, the target audience and stakeholders include: * **Other Chartered Accountants:** As a reminder of the importance of ethical conduct and the consequences of misconduct. * **Clients and Potential Clients of Chartered Accountants:** To inform them of disciplinary actions taken against members of the profession, contributing to transparency. * **ICAI Members:** Who need to be informed of disciplinary actions. * **The Public:** To maintain confidence in the accounting profession. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Disciplinary Committee of the ICAI, the Appellate Authority, and the Secretary of the ICAI. * **Timelines:** The Disciplinary Committee's order was pronounced and upheld by the Appellate Authority on October 25, 2022. The removal from the Register is effective from December 16, 2022, for a period of 24 months. * **Procedures:** The notification indicates that the disciplinary process follows the Chartered Accountants Act, 1949, the Chartered Accountants Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases Rules, 2007, and the Chartered Accountants Regulations 1988. **8. Expected Outcomes / Impact of Changes:** * **Likely Intended Outcome:** The expected outcome is to deter professional misconduct among Chartered Accountants, reinforce ethical standards, and maintain public trust in the profession. **9. Conclusion:** The notification regarding the disciplinary action against CA. Subrata De serves as a public announcement of the ICAI's commitment to upholding ethical standards and enforcing its regulations. It highlights the consequences of professional misconduct and reinforces the importance of ethical behavior within the Chartered Accountancy profession, aiming to preserve the integrity and reputation of the profession.

Key Entities Referenced