Prathiba M. Singh, J.

The Institute of Chartered Accountants of India (‘ICAI’) has filed this reference under Section 21(5) of the Chartered Accountants Act, 1949 (hereinafter `the Act’). The reference seeks passing of necessary orders under Section 21(6) of the Act pursuant to the recommendations of the ICAI Council in its 325th meeting held from 1st to 3rd June, 2013.

Factual background:

2. The genesis of the recommendations of the ICAI Council is the letter dated 10th June, 1999 received by the ICAI from the Securities and Exchange Board of India (‘SEBI’) pointing out several irregularities in the public issue of one M/s. Bhartari Financial Services Ltd. (‘BFSL’). The letter written by SEBI to ICAI stated that investigations were conducted into the buying, selling and dealing in shares of BFSL, as also the role of Shri S.K. Gupta, Chairman of BFSL and Shri Ashok Chawla, Chartered Accountant (‘CA’), who is also a member of the ICAI. SEBI informed ICAI that the Chairman, SEBI had approved issuance of intimation to the ICAI to proceed against both these persons, who ar