ICAI readies CA Act changes to build bigger accounting firms

New Delhi: The Institute of Chartered Accountants of India is set to approach the government with proposed changes to the Chartered Accountants Act that could pave the way for larger Indian accounting and consulting firms, people familiar with the development said.

The move comes as the Centre pushes to create large local consulting entities capable of competing with the global ”-EY, Deloitte, KPMG and PwC.

The Prime Minister’s Office has held multiple deliberations on regulatory changes needed to help domestic firms scale up and capture a share of the $240-billion global auditing and consultancy market.

“We can say ICAI proposal will be ready in the next two months,” an ICAI official told ET.

A decision on the suggestions will be taken by the ministry of corporate affairs and later by Parliament if the Act is amended.

ICAI’s proposals include amendments to the Chartered Accountants Act for measured deregulation of non-assurance services, providing greater flexibility and a level playing field for CAs in consultancy and advisory work.

In 2017, Prime Minister Narendra Modi had called for at least four Indian entities to be among the top eight globally.

ICAI also plans to revise its 2021 networking guidelines and 2006 guidelines governing practice in corporate form.

The expanded framework will allow networks to onboard multidisciplinary entities, including company secretaries, cost accountants, advocates, engineers, architects and actuaries, alongside ICAI-registered and other professional entities.

“The objective is to facilitate participation by professionals regulated under respective laws. This aims widening expertise and service capabilities and creating firms of greater institutional scale,” the official said.