Parl Okays CA Bill to Revamp Institutes

Parliament on Tuesday approved the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2022 to revamp the functioning of the three professional institutes and bring more transparency.

Finance Minister Nirmala Sitharaman said the changes will not impact the professional autonomy of these bodies, she added that the revamp was required, especially in the light of IL&FS crisis.

“When the IL&FS crisis happened, we were repeatedly questioned about number of failing chartered accountants, who did not deliver as was the expectation through the letter and spirit. Over and over again questions are being asked as to why wouldn’t it be more transparent process,” Sitharaman said in her reply to the discussion on the Bill in Rajya Sabha.

The bill process changes in the disciplinary mechanism under the three Acts and specifies time-lines for disciplinary proceedings and enhances the quantum of fines for partners and firms found guilty of misconduct. It also provides more external representation on the Board of Discipline and Disciplinary Committee. It paves way for the setting up of a coordination committee headed by the Secretary of Ministry of Corporate Affairs, with representations from the three institutes.

The bill also provides for registration of firms with the institutes and it will help in paving way for Indian accountancy firms to grow big, she said.

Lok Sabha had cleared the bill on March 30, 2022. Rajya Sabha passed the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2022 with a voice vote after negating all amendments moved by the Opposition.

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