CA Act Amendment Bill: ICAI President seeks status quo on disciplinary committee

CA Act Amendment Bill: ICAI President seeks status quo on disciplinary committee As a Parliamentary panel considers proposed amendments to a statute governing chartered accountants, ICAI President Debashis Mitra argued on Tuesday for retaining the "status quo" on the institute's disciplinary committee's composition, claiming that the current system is effective. Last December, the ministry of corporate affairs submitted a bill in Parliament proposing modifications to existing legislation governing the apex institutes of chartered accountants, cost accountants, and company secretaries. The Chartered Accountants, Cost and Works Accountants, and Company Secretaries (Amendment) Bill, 2021, was referred to the Parliamentary Standing Committee on Finance for review by the Lok Sabha. Certain elements in the bill have been highlighted by the Institution of Chartered Accountants of India (ICAI), including those relating to the disciplinary committee, striking off names of defaulting CA (Chartered Accountant) firms, and approval of names of CA firms registered with the institute. The disciplinary committee now comprises five members: three members of the ICAI central council and two government nominees. Two CAs and three non-CAs are proposed in the bill. Furthermore, it has been proposed that the disciplinary committee be led by someone who is not a CA. Mitra, who took over as ICAI President in February, said on Tuesday that the institute's plea is for the "status quo" in terms of the disciplinary committee's composition. Mitra told reporters that the disciplinary committee is doing a good job. The ICAI has expressed some reservations about the proposed coordination committee between the institutes of chartered accountants, cost accountants, and company secretaries. The institute has given its submissions to the Parliamentary panel on the bill. "We are incredibly proud of our independence," Mitra remarked. The Institute of Chartered Accountants of India (ICAI) has around 3.5 lakh members and 7.5 lakh students.