(1) There shall be a disciplinary committee as follows to inquire into a complaint and recommend the Council for necessary action in cases where any one lodges a complaint in the Institute that any member has done any act or action contrary to this Act or the Rules or code of conduct framed under this Act, or where the Institute receives such information:
(a) A fellow chartered accountant designated by the Council from amongst the councilors referred to in Clause (a) of Sub-section (3) of Section 7
-Chairperson
(b) Three persons nominated by the Council from amongst the councilors -Member
(c) Two persons nominated by the Council from amongst the members -Member
(d) One person nominated by the Auditor General -Member
(2) Notwithstanding anything contained in Sub-section (1), the chairperson or any member of the disciplinary committee shall not be entitled to take part and cast vote at a meeting which is to be held to inquire into a complaint made that the chairperson or the member has done any act and action contrary to this Act or the Rules, bye-laws or codes of conduct framed under this Act and to make recommendation to the Council for necessary action.
(3) The procedures relating to the meeting of disciplinary committee  and the term of office of the chairperson and members of the disciplinary
committee shall be as prescribed.
(4) The disciplinary committee shall have the same powers as are vested in the court in respect of issuing an order to the concerned person,
receiving evidence and examining witnesses.
? (5) The disciplinary committee shall make recommendation, along with its opinion and finding, to the Council for taking necessary action against a member found guilty from its investigation; and the Council may,  in view of such recommendation, impose any of the following penalties on the concerned member, according to the gravity of the offence:
(a) Reprimanding;
(b) Removing from the membership for a period not exceeding Five years;
(c) Prohibiting from carrying on the accountancy for any specific period;
? (d) Canceling the professional certificate or membership.
(6) Where the disciplinary committee, upon investigating the matter that any councilor has done any act or action contrary to this Act or Rules,
bye-laws or code of conduct framed under this Act, has made recommendation, along with its opinion and findings, to the Council for instituting necessary action against the councilor, such councilor shall not be entitled to take part and cast vote at the meeting of the Council while taking decision by the Council on such recommendation.? (7) Before imposing penalty as referred to in Sub-section (5), the Council shall provide a reasonable opportunity to the concerned member to defend himself/herself.
(8) The concerned member may, if he or she is not satisfied with the decision referred to in Sub-section (5), make an appeal to the Court of Nepal.