New Delhi, February 18 The Institute of Chartered Accountants of India (ICAI), the apex body for chartered accountants, announced global networking guidelines on Wednesday, paving the way for the creation of large, domestically-based chartered accounting firms that can also collaborate with global networks.
According to the notification, these guidelines would also bring the operations of "Global Networks of Chartered Accountants (or equivalent in respective jurisdictions) under the regulatory jurisdiction of ICAI, as far as their Indian operations are concerned."
This move is significant in the context of larger government efforts to promote the development of strong, homegrown accounting firms that can help create more opportunities in the country's growing economy and also compete with global players.
ICAI President Prasanna Kumar D said on Wednesday that the guidelines have been announced, and that any foreign network wishing to collaborate with domestic chartered accounting firms must register with the institute.
In the gazette notification on the global networking guidelines, ICAI stated that it is expedient to create a supportive framework in India to develop professional networks for the chartered accountancy profession.
It also stated that the focus is to enhance and strengthen the professional opportunities in the emerging trade order – "domestically and internationally for domestic entities registered with ICAI, by enabling a level playing field to foster a culture of innovation and competition."
These guidelines would help enhance and synergize the capacity of domestic chartered accounting firms registered with ICAI by providing exposure to best global practices through the sharing of latent and emerging knowledge and technology, including tools and processes.
ICAI has more than five lakh members.