From The Economic Times · Twesh Mishra · · 1m 20s
India's accounting firms get a regulatory overhaul
ICAI proposes major changes to the Chartered Accountants Act to help Indian firms compete globally.
In brief
ICAI proposes major changes to the Chartered Accountants Act to help Indian firms compete globally. India is loosening regulations on accounting firms to create domestic competitors for the Big Four global consulting giants. Originally reported by The Economic Times.
India targets global accounting giants
The government wants to create large Indian consulting firms that can compete with EY, Deloitte, KPMG and PwC in the $240 billion global market.
ICAI proposes major regulatory changes
The Institute of Chartered Accountants of India will submit proposed amendments to the Chartered Accountants Act within two months, with decisions to follow from the corporate affairs ministry and Parliament.
“We can say ICAI proposal will be ready in the next two months”
Deregulation of non-assurance services
ICAI's proposals include measured deregulation of non-assurance services to give chartered accountants greater flexibility in consultancy and advisory work.
Multidisciplinary partnerships expand
New guidelines will allow accounting networks to include company secretaries, cost accountants, advocates, engineers, architects and actuaries, creating firms with broader expertise.
Revised networking and practice rules
ICAI will update its 2021 networking guidelines and 2006 corporate practice rules to support larger institutional scale and wider service capabilities.
Modi's 2017 vision takes shape
Prime Minister Modi called for at least four Indian entities in the global top eight by 2017, and these regulatory changes are the mechanism to achieve that goal.
What it means
India is loosening regulations on accounting firms to create domestic competitors for the Big Four global consulting giants.
