Power to investigate allows authority to initiate or take over inquiries and report serious frauds to the central government. Rule 10 empowers the Authority to investigate professional or other misconduct on government reference, its own compliance oversight, or suo motu action after recording reasons, and to refer such matters to its Enforcement Division. If evidence during investigation indicates non compliance involving fraud meeting the statutory threshold, the Authority must report findings to the Central Government. At commencement, the Authority exclusively initiates action against auditors of companies specified in rule 3, while misconduct proceedings for other auditors remain with the Institute of Chartered Accountants of India under existing law.