ICAI Set to Finalise Guidelines for International CA Networks: Report

New Delhi, September 9 (Kiran News) — The Institute of Chartered Accountants of India (ICAI) is preparing to finalise guidelines to strengthen the framework for CA firms seeking to join or collaborate with international networks, according to a report by The Hindu Businessline.

ICAI president Charanjot Singh Nanda said the new rules will address challenges linked to partnerships and tie-ups with global firms.

“We are releasing guidelines to address issues related to tying up with or becoming part of international firms or international networking. We will provide a complete checklist of dos and don’ts,” he noted.

The guidelines aim to ensure that such alliances are legally recognised and fall under ICAI’s jurisdiction.

Key Provisions in Draft Guidelines

• Public Feedback: The draft guidelines were open for comments until July 16 and are now under review.

• Scope: They cover naming conventions, registration requirements, constitutional changes, and annual return submissions.

• Compliance: Each overseas network must appoint a Nodal Officer to ensure compliance with ICAI regulations.

• Ethical Standards: Indian firms joining global networks must follow both local laws and the ethical norms of international associations.

Networking Portal in the Works

Alongside the guidelines, ICAI plans to launch a digital networking portal for members to enable professional networking, mergers, partnerships, and collaborations. The initiative is expected to help small and medium firms expand their service capabilities.

Revised Merger & Demerger Rules

ICAI has also updated its merger and demerger framework. Under the revised rules:

• Firms can merge while retaining seniority of both entities.

• Demergers will be allowed within 1 to 10 years of the merger while keeping the original name.

• Firms can freeze their names for up to 10 years, ensuring continuity of establishment date and seniority upon revival, though no professional activity can be conducted during the frozen period.

Nanda said the updated rules will encourage consolidation for scale and efficiency, while also allowing flexibility for future restructuring.