Rule 10 Power to investigate
(1) Where the AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act has-
(a) received any reference from the Central Government for investigation into any matter of professional or other misconduct under sub-section (4) of section 132 of the ActDefined in rule 2(b): Act means the Companies Act, 2013 (18 of 2013);
(b) decided to undertake investigation into any matter on the basis of its compliance or oversight activities; or
(c) decided to undertake suo motu investigation into any matter of professional or other misconduct, after recording reasons in writing for this purpose,
it shall forward the matter to its DivisionDefined in rule 2(g): Division means a division 1[including the one headed by the chairperson or a full time member] established by the Authority for the purpose of organising and carrying out its functions and duties dealing with enforcement for carrying out investigation and other action.
(2) If, during the investigation, the AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act has evidence to believe that any company or body corporate has not complied with the requirements under the ActDefined in rule 2(b): Act means the Companies Act, 2013 (18 of 2013) or rules which involves or may involve fraud amounting to rupees one crore or more, it shall report its findings to the Central Government.
(3) On the commencement of these rules-
(a) the action in respect of cases of professional or other misconduct against auditors of companies referred to in rule 3 shall be initiated by AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act and no other institute or body shall initiate any such proceedings against such auditors:
Provided that no other institute or body shall initiate or continue any proceedings in such matters of misconduct where the AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act has initiated an investigation under this rule;
(b) the action in respect of cases of professional or other misconduct against auditors of companies or bodies corporate other than those referred to in rule 3 shall continue to be proceeded with by the Institute of Chartered Accountants of India as per provisions of the Chartered Accountants ActDefined in rule 2(b): Act means the Companies Act, 2013 (18 of 2013), 1949 and the regulations made thereunder.