To initiate a disciplinary proceeding before the National Financial Reporting Authority (NFRA), there is a specific legal process governed by the Companies Act, 2013 and the NFRA Rules, 2018. Here’s a detailed breakdown:
1. Legal Basis for Disciplinary Proceedings
Under Section 132(4) of the Companies Act, 2013, NFRA has the power to:
- Investigate professional or other misconduct by chartered accountants or firms.
- Initiate disciplinary action based on such findings.
2. Who Can Initiate or Trigger an Inquiry?
While only NFRA itself can initiate a formal investigation or disciplinary proceeding, any individual, including a whistleblower, can write to NFRA to provide information or lodge a complaint that may trigger a suo motu inquiry.
3. How to Write to NFRA:
You can submit a written representation or complaint to NFRA either:
a. By Post:
Write a formal letter addressed to:
The Secretary,
National Financial Reporting Authority,
7th Floor, Hindustan Times Building,
18-20 Kasturba Gandhi Marg,
New Delhi – 110001, India
b. By Email:
Try reaching out via official email listed on nfra.gov.in, or as per the latest contact details published.
c. Online (If Available):
Check the NFRA portal for any grievance or complaint submission form. (As of now, NFRA doesn’t have a public online complaint portal like SEBI or RBI, but this may change.)
4. Contents of the Complaint Letter:
Your complaint should be:
- Detailed and fact-based, including all relevant documents.
- Provide evidence of professional or other misconduct by a CA or audit firm.
- Include your contact details (though anonymous letters can be sent, they may not be acted upon unless substantiated).
5. What Happens Next:
- If NFRA finds prima facie merit, it may initiate an investigation under Rule 9 of the NFRA Rules, 2018.
- The process may lead to disciplinary proceedings, show cause notices, and penalties (including debarring of auditors).
Key Point:
While an individual cannot directly “initiate” disciplinary proceedings in a legal sense, their complaint can serve as the trigger for NFRA to take action suo motu.