ICAI to soon get powers to act against erring partnership firms


PTI, Dec 18, 2021, 8:25 AM IST

New Delhi: Chartered accountants’ apex body ICAI will soon have powers to initiate disciplinary action against erring partnership firms as well, with the government proposing amendments to the Chartered Accountants Act.

The apex institutes for cost accountants and company secretaries too will get similar powers.

As part of efforts to bolster the disciplinary mechanism of the ICAI as well as the institutes of cost accountants and company secretaries, Corporate Affairs Minister Nirmala Sitharaman on Friday introduced a bill in the Lok Sabha to amend the Acts governing these professions.

Over the years, the government has taken various measures to curb possible corporate misdoings. In recent years, the role of some chartered accountants has come under the regulatory scanner.

Against this backdrop, the proposed amendments seek to empower ICAI to take disciplinary action against partnership firms of Chartered Accountants (CAs).

At present, the Institute of Chartered Accountants of India (ICAI) can only initiate action against its members.

ICAI President Nihar N Jambusaria told PTI that the proposed amendments to the Act would empower the institute to take action against partnership firms.

Various amendments have been proposed to the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959 and the Company Secretaries Act, 1980.

The Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2021 was introduced in the Lok Sabha on Friday.

In a statement, the Institute of Company Secretaries of India (ICSI) said the scope to deal with professional misconduct will be widened with the inclusion of a member in his individual capacity or as partner/owner of the firm.

”The bill aimed at strengthening the disciplinary mechanism by making the disciplinary directorate independent will initiate the appointment of non-member, nominated by the central government, as Presiding Officer. ICSI also appreciates the time-bound disposal of cases proposed in the bill,” ICSI said.

A new provision in the Act has been proposed for registration and register of firms. Besides, names can be removed from the register of firms and reviewed before the ICSI council. This will help in effective supervision of the firms as well as streamline the process of registration and function of firms of company secretaries.

Bolstering the disciplinary mechanisms, providing provision for time-bound disposal of cases against the members of the three institutes, addressing the conflict of interest between the institutes’ administrative and disciplinary arms, and enhancing overall accountability are the bill’s key objectives.

nst CA firms.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Actor Allu Arjun granted regular bail in theatre stampede case by local court in Hyderabad

‘Medical seats can’t remain vacant’: SC asks Centre to hold talks with stakeholders

PM Modi likens AAP to ‘aapda’ for Delhi, calls for its defeat in polls

President Droupadi Murmu hails NIMHANS for its integrated medicine services

Periya twin murder: CBI Court sentences 10 to double life imprisonment

Bengaluru-Mysuru Infrastructure Corridor Project: Right to property a constitutional right, says SC 

BJP stages demonstration against bus fare hike in Karnataka

Related Articles More

Budget Wishlist: Financial sector seeks tax sops, steps to deepen financial markets

India’s manufacturing growth hits 12-month low in Dec amid softer rise in output, new orders

Stock markets start 2025 on high note, snap two-day decline on buying in bluechips

Rs 2000 notes withdrawal: Rs 6,691 cr worth such notes still with public

Petrol, diesel sales soar on holiday travel

MUST WATCH

Tulunadu Daivaradane

Feeding Birds with Creative Paddy Art!

Areca Nut

HOTEL SRI DURGA BHAVANA

Harish Poonja


Latest Additions

Mangaluru: Illegal flexes and banners return to city streets

Actor Allu Arjun granted regular bail in theatre stampede case by local court in Hyderabad

BPSC exam row: Protests continue to rock Bihar as demonstrators disrupt traffic movement

Leopard sightings in Venur cause alarm; Forest officials install traps

Will protect our interests: India on China’s plan to build dam on Brahmaputra

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.