Govt to amend Laws for effective Disciplinary points for ICAI, ICWAI, ICSI

The government is set to amend laws to streamline the functioning, especially the disciplinary aspects, of three professional institutes of Chartered Accountants of India (ICAI), Institute of Cost and Works Accountants of India (ICWAI) and Institute of Company Secretaries of India (ICSI).

An invoice to amend related provisions of laws governing the three bodies is anticipated to be launched through the second half of the finances session of Parliament. The thought is to step up oversight on the three bodies after a committee instructed a number of adjustments nearly three years in the past. In truth, some of the proposals have been accepted, the authorized adjustments are being undertaken in session with the institutes.

As per a part of adjustments, the government will have the final say to appoint secretaries of institutions and directors responsible for disciplining professionals. At one time, the Ministry of Corporate Affairs which is behind the bill was thinking about appointing government officers for these roles.

ICAI itself has been open to changes in recent months and has sought to simplify the process in cases such as those where the Quality Review Board suggests disciplinary action against its members, who are chartered accountants.

However, Meenakshi Dutta Ghosh, heading the committee and a former civil servant, had suggested that The disciplinary platform must be independent of the institution while indicating that the current mechanism needs to be revived.

Additionally, there are several reasons why the laws of the three statutory bodies need to be amended.

• To step up oversight on all three bodies considering several changes suggested by a committee almost three years back.
• Some proposals have been already accepted and legal changes are being made in consultation with institutions.
• The ICAI seems ready to make changes in the past few months and also tried to simplify the process in cases where the Quality Review Board suggested disciplinary action against its members (chartered accountants).
• The disciplinary track record of ICAI had come under question a few years ago, even, Prime Minister Narendra Modi flagged it at the time of the introduction of GST.