The government is set to amend laws to streamline the functioning, especially the disciplinary aspects, of three professional institutes, namely the Institute of Chartered Accountants of India (ICAI), Institute of Cost 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 part of the proposal, the government intends to have a say in the appointment of secretaries of the institutes and directors responsible for discipline of the professionals.
At one time, the ministry of corporate affairs, which is piloting the bill, was looking to appoint government officers in these roles.
The committee headed by Meenakshi Dutta Ghosh, a former civil servant, had suggested that the disciplinary platform should be independent of the institute while pointing out that the current mechanism needed to be revamped.
There are several reasons which led to the amendment in the laws of all the three statutory bodies.
Firstly, the idea of the amendment is to step up oversight on the three bodies after a committee suggested several changes almost three years ago.
Secondly, some of the proposals have already been accepted and the legal changes are being undertaken in consultation with the institutes.
Thirdly, ICAI itself was open to changes in recent months and had sought to simplify the process in cases such as those were the Quality Review Board suggested disciplinary action against its members, who are chartered accountants.
Fourthly, the disciplinary track record of ICAI had come under the scanner a few years ago, with even Prime Minister Narendra Modi flagging it at the time of the launch of goods and services tax.
Subsequently, the role of auditors had come under scrutiny after the collapse of IL&FS and the government had set up the National Financial Reporting Authority to look at important cases.
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