New rules for aggregation of domestic CA firms in three months: ICAI

The President of The Institute of Chartered Accountants of India (ICAI) announced plans to introduce new guidelines for domestic chartered accountant (CA) firms within the next three months, aimed at enhancing their competitiveness on a global scale, similar to firms like the Big Four.

In an interview with Business Standard, he mentioned that while some aggregation guidelines are currently in place, they are under review. These new rules will include international networking guidelines, enabling collaboration with overseas companies for domestic firms.

“We are targeting to finalize and implement all guidelines within the next two to three months,” he stated.

Earlier this year, ICAI established a Committee for Aggregation of CA Firms (CACAF) to reassess existing guidelines. The revised guidelines will cover aspects such as mergers, demergers, multidisciplinary partnerships, and CA advertisement regulations, all aimed at facilitating the growth of Indian CA firms.

Regarding the Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC), he expressed optimism, labeling it a potential “game-changer” for Indian CAs. An expert committee, chaired by the ICAI President, was formed by the International Financial Services Centres Authority (IFSCA) to suggest measures to establish GIFT IFSC as a global finance and accounting hub.

The committee’s report, submitted in March, underwent public review until April. Final guidelines from IFSCA are expected by the end of this month or next.

Additionally, the expert committee recommended a new law for regulating bookkeeping, accounting, tax, and financial crime compliance services in the GIFT IFSC, aiming to standardize operations and personnel qualifications.

ICAI has partnered with IFSCA to establish a Centre of Excellence in GIFT City, focused on training and upskilling CAs to meet the demands of the international standards expected in the region.

Highlighting the growing significance of CAs in India’s economy, he emphasized the need for strategic planning and training to meet future demands. He projected that by 2047, India would require around 3 million working CAs to support its growing economy, underscoring the importance of proactive measures.