Disciplinary Portal

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Professional and Other Misconduct

The principles which govern the conduct of a professional broadly encompass (i) integrity (ii) professional independence (iii) professional competence (iv) objectivity (v) ethical behavior (vi) conformance to technical standards, if any, prescribed; and (vii) confidentiality of information acquired in the course of professional work.

The Professionals are expected to conduct themselves in such a manner so as to uphold the grace, dignity and professional standing of the Institute.

The provisions relating to Misconduct by the members are given in Chapter V of the Company Secretaries Act, 1980 (Act) read with the First and the Second Schedule to the Act. The procedures to deal with the Misconduct cases are specified under the Company Secretaries (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007 made by the Central Government.

  • Disciplinary Directorate
  • The Council of the Institute has established a Disciplinary Directorate pursuant to Section 21of the Company Secretaries Act, 1980 headed by the Director (Discipline) and other employees for making investigations in respect of any information or complaint received by it.

    Where the Director (Discipline) is of opinion that a member is guilty of any professional or other misconduct mentioned in the First Schedule, he/she shall place the matter before the Board of Discipline and where the Director (Discipline) is of the opinion that a member is guilty of any professional or other misconduct mentioned in the Second Schedule or in both the Schedules, he/she shall place the matter before the Disciplinary Committee.

  • Professional or Other Misconduct
  • For the purposes of the Company Secretaries Act, 1980, the expression “professional or other misconduct”, pursuant to Section 22 of the Act, shall be deemed to include any act or omission provided in any of the Schedules, but nothing in this section shall be construed to limit or abridge in any way the power conferred or duty cast on the Director (Discipline) under sub-section (1) of Section 21 to inquire into the conduct of any member of the Institute under any other circumstances.

    • The First Schedule to the Company Secretaries Act, 1980
    • PART I It deals with the Professional misconduct in relation to Company Secretaries in Practice. It contains eleven Items. PART II It deals with the Professional misconduct in relation to members of the Institute in service. It contains two Items. PART III It deals with the Professional misconduct in relation to members of the Institute generally. It contains three Items. PART IV It deals with other misconduct in relation to members of the Institute generally. It contains two Items.
    • The Second Schedule of the Company Secretaries Act, 1980
    • PART I
      It deals with the Professional misconduct in relation to Company Secretaries in Practice. It contains ten Items.
      PART II
      It deals with the Professional misconduct in relation to members of the Institute generally. It contains four Items.
      PART III
      It deals with the other misconduct in relation to members of the Institute generally.
  • Consequences of committing professional or other misconduct by the members
  • For professional or other misconduct specified in the First Schedule to the Company Secretaries Act, 1980

    Pursuant to sub-section (3) of Section 21A of the Company Secretaries Act, 1980, in case a member is found guilty of a professional or other misconduct mentioned under the First Schedule, after following the due procedure provided in the Company Secretaries (Procedure Of Investigations Of Professional and Other Misconduct and conduct of Cases) Rules, 2007 read with Company Secretaries Act 1980, any one or more of the following actions may be taken by the Board of Discipline constituted under Section 21A of the Company Secretaries Act, 1980, namely : -

    • (a) Reprimand the member;
    • (b) Remove the name of the member from the Register of Members up to a period of three months;
    • (c) Impose such fine as it may think fit which may extend to rupees one lakh.

    For professional or other misconduct specified in the Second Schedule to the Company Secretaries Act, 1980

    Pursuant to sub-section (2) of Section 21B of the Company Secretaries Act, 1980, in case a member is found guilty of a professional or other misconduct mentioned under the Second Schedule or under both the Schedules after following the due procedure provided in the Company Secretaries (Procedure Of Investigations Of Professional and Other Misconduct and conduct of Cases) Rules, 2007 read with Company Secretaries Act 1980, any one or more of the following actions may be taken , by the Disciplinary Committee constituted under Section 21B of the Company Secretaries Act, 1980, namely:

    • (a) Reprimand the member;
    • (b) Remove the name of the member from the Register of Members permanently or for such period, as it thinks fit;
    • (c) impose such fine as it may think fit, which may extend to rupees five lakhs.
  • Appeal to Appellate Authority

Pursuant to Section 22E of the Company Secretaries Act, 1980, any member of the Institute aggrieved by any order of the Board of Discipline or the Disciplinary Committee imposing on him any of the penalties referred to in sub-section (3) of Section 21A and sub-section (3) of Section 21B, may prefer an appeal to the Authority within ninety days from the date on which the order is communicated to the member.

Orders by the Appellate Authority

The Appellate Authority may, after calling for the records of any case, revise any order made by the Board of Discipline or the Disciplinary Committee under sub-section (3) of Section 21A and sub-section (3) of Section 21B of the Company Secretaries Act, 1980, and may after following due process:

  • (a) Confirm, modify or set aside the order;
  • (b) Impose any penalty or set aside, reduce, or enhance the penalty imposed by the order;
  • (c) Remit the case to the Board of Discipline or Disciplinary Committee for such further enquiry as the Authority considers proper in the circumstances of the case; or
  • (d) Pass such other order as the Authority thinks fit.

Board of Discipline

Constitution of the Board of Discipline:
CS Pawan G Chandak Presiding Officer
CS NPS Chawla Member
CS Asish Mohan Member

Placing case before the Board of Discipline:

Where the Director (Discipline) is of opinion that a member is guilty of any professional or other misconduct mentioned in the First Schedule, he shall place the matter before the Board of Discipline.

The Board of Discipline shall follow summary disposal procedure in dealing with all the cases before it. Where the Board of Discipline is of the opinion that a member is guilty of a professional or other misconduct mentioned in the First Schedule, it shall afford to the member an opportunity of being heard before making any order against him and may thereafter take any one or more of the following actions, namely:—

  • (a) reprimand the member;
  • (b) remove the name of the member from the Register up to a period of three months;
  • (c) impose such fine as it may think fit which may extend to rupees one lakh.

The Director (Discipline) shall submit before the Board of Discipline all information and complaints where he is of the opinion that there is no prima facie case and the Board of Discipline may, if it agrees with the opinion of the Director (Discipline), close the matter or in case of disagreement, may advise the Director (Discipline) to further investigate the matter.

Disciplinary Committee

Constitution of the Disciplinary Committee:
CS B Narasimhan Presiding Officer
Shri Sushil Kumar Member (Govt. Nominee)
Shri Sunil Dadhe Member (Govt. Nominee)
CS Praveen Soni Member
CS Sandip Kumar Kejriwal Member

Placing case before the Disciplinary Committee

Where the Director (Discipline) is of opinion that a member is guilty of any professional or other misconduct mentioned in the Second Schedule or in both the Schedules, he shall place the matter before the Disciplinary Committee. The Disciplinary Committee, while considering the cases placed before it, shall follow such procedure as may be specified.

Where the Disciplinary Committee is of the opinion that a member is guilty of a professional or other misconduct mentioned in the Second Schedule or both the First Schedule and the Second Schedule, it shall afford to the member an opportunity of being heard before making any order against him and may thereafter take any one or more of the following actions, namely:—

  • (a) Reprimand the member;
  • (b) Remove the name of the member from the Register permanently or for such period, as it thinks fit;
  • (c) impose such fine as it may think fit, which may extend to rupees five lakhs.

Disciplinary Directorate

The Council has established a Disciplinary Directorate under Section 21 of the Company Secretaries Act, 1980 by notification, headed by Director (Discipline), and other employees for making investigations in respect of any information or complaint received by it.

CS Ashok Kumar Dixit, Joint Secretary (SG), ICSI is designated as Director (Discipline) by the council

On receipt of a Complaint or information of Professional and Other Misconduct in relation to Company Secretaries, the Disciplinary Directorate shall follow the procedure as specified under the Company Secretaries (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007 read with the Company Secretaries Regulations, 1980, in order to make investigations under the provisions of the Company Secretaries Act, 1980.