(1) The Central Government shall appoint the chairperson and a full time member referred to in rule 3 on the recommendation of a search-cum-selection committee consisting of ─
(a) Cabinet Secretary - Chairperson;
(b) Additional Principal Secretary to the Prime Minister – Member;
(c) Secretary – Ministry of Corporate Affairs– Member;
(d) Chairperson, National Financial Reporting Authority (for selection of full-time members) – Member;
(e) three experts of repute from a panel of experts in the field of accountancy, auditing, finance, law (to be nominated by the Central Government) - Members
(2) The Secretary, Ministry of Corporate Affairs shall be the convener of the search-cum-selection committee.
(3) The search-cum-selection committee shall determine its procedure for making its recommendation.
(4) No appointment of chairperson or a full time member shall be invalid merely by reason of any vacancy or absence in the search-cum-selection committee.
(5) The search-cum-selection committee shall make its recommendations in regard to appointment of chairperson or the members, as the case may be, to the Central Government within a period not exceeding one hundred and twenty days from the date of reference made to it by the Central Government.
(6) The following persons shall be appointed as part time members of the Authority namely:-
(i) one member to represent the Ministry of Corporate Affairs, who shall be an officer not below the rank of Joint Secretary, ex-officio;
(ii) one member to represent the Comptroller and Auditor General of India, who shall be an officer not below the rank of Accountant General or Principal Director, ex-officio;
(iii) one member to represent the Reserve Bank of India, who shall be an officer not below the rank of Executive Director, ex-officio;
(iv) one member to represent the Securities and Exchange Board of India, who shall be an officer not below the rank of Executive Director, ex-officio;
(v) President, Institute of Chartered Accountants of India, ex-officio;
(vi) Chairperson, Accounting Standards Board, Institute of Chartered Accountants of India, ex-officio;
(vii) Chairperson, Auditing and Assurance Standards Board, Institute of Chartered Accountants of India, ex-officio; and
(viii) two experts from the field of accountancy, auditing, finance or law.