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Govt to amend Laws for effective Disciplinary points for ICAI, ICWAI, ICSI
The Govt. of India is ready to amend laws to streamline the workings, in particular disciplinary dimensions, of the three professionals in ICAI, ICWAI and ICSI.
The invoice for amending the relevant provisions of the laws governing the three bodies is expected to be launched by the second half of Parliament's finance session. The idea is to step up the supervision of the 3 bodies after the committee has made a no of changes almost 3 years in the past. In fact, a few of the suggestions have been approved, and the authorised modifications are being undertaken in session with the institutes i.e ICAI, ICWAI, ICSI.
As part of the modifications, the government would have the ultimate say in appointing secretaries of organizations and directors accountable for the discipline of professionals. At one point, the Ministry of Corporate Affairs, which is behind the bill, was thinking about nominating government employees for these positions.
Institutes of Chartered Accountants of India itself has been open to reform in past months and has tried to simplify the procedure in situations such as those where the Quality Review Board recommends disciplinary action against its members who are CA.
However, Mr Meenakshi Dutta Ghosh, (heading to the committee and a former civil servant,) recommended that the disciplinary platform must be independent of the institution, when showing that the existing mechanism requires to be revived.
In addition, there are many reasons why the laws of the 3 statutory bodies are required to be changed.
- Enhance the supervision of all 3 bodies ICAI, ICWAI, ICSI, considering a number of reforms recommended by the committee nearly 3 years ago.
- Several plans have been already adopted and legal amendments are being made in consultation with the institutions.
- The Institutes of Chartered Accountants of India is willing to make modifications in the last few months and has also moved to simplify the procedure in cases where the Quality Review Board has proposed disciplinary actions against its members i.e., chartered accountants.
The disciplinary track record of the Institutes of Chartered Accountants of India was challenged a few years back, even when Hon’ble PM Narendra Modi flagged it at the time of the implementation of the Goods & Services Tax.
Changes in voting of ICAI- Chartered Accountants (Election to the Council) Amendment Rules
Chartered Accountants (Election to the Council) Amendment Rules, 2: Members who do not residing at their registered professional address can now vote. If an ICAI member lives in the same Region as his or her professional address, he or she can now exercise his or her voting rights at the polling station closest to his or her place of availability on election day by notifying ICAI 14 days in advance. If an ICAI member lives in another Region, he or she can exercise his or her right to vote at the polling station closest to his or her place of residence on election day by notifying ICAI 21 days in advance.
Minister of Finance to introduce CA Amendment Bill towards Disciplining CAs
- The disciplinary mechanisms of three professional bodies, Chartered Accountants, Company Secretaries, and Cost Accountants, are intended to be strengthened under the bill.
- Nirmala Sitharaman, the Finance Minister, is expected to propose a Bill in the Lok Sabha on Friday to tighten the disciplinary system for chartered accountants, cost accountants, and company secretaries.
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In this regard, reference may be made to below cited documents:
- Guidelines for Formation of Multi-disciplinary Partnership as per the Chartered Accountants Act, 1949
- The Chartered Accountants (Amendment) Regulations, 2021 dated July 08, 2021
- Frequently Asked Questions (FAQs) on Multi-disciplinary Partnership Firm of Chartered Accountants in Practice (MDP CAs in Practice)
