LS passes Accountancy Bill, FM says not to affect Institutes

Lok Sabha on Wednesday approved a bill to revamp the functioning of the institutes of chartered accountants, cost accountants and company secretaries, with Union minister Nirmala Sitharaman asserting that the changes will not impact the autonomy of these bodies.

The Chartered Accountants, Cost and Works Accountants and Company Secretaries (Amendment) Bill seeks to appoint non-Chartered Accountant (CA), non-cost accountant and non-company secretary as the presiding officer of the disciplinary committees of the respective institutes.

The three institutes are the Institute

of Chartered Accountants of India (ICAI), Institute of Cost Accountants of India (formerly known as ICWAI), and Institute of Company Secretaries of India.

Piloting the bill, Finance and Corporate Affairs Minister Nirmala Sitharaman said the amendments will not infringe upon the autonomy of the three institutes. Instead, it will enhance the quality of audit and improve the country's investment climate, she added.

The amendments, she said, "will make the institutes more responsible and accountable" and encourage them to adopt global best practices. All stakeholders should have greater confidence of audit statements, she emphasised.

Among other things, the bill provides for setting up of a coordination committee headed by the Secretary of the Ministry of Corporate Affairs. It will have representations from the three institutes.

The minister said that earlier, the three institutes had signed an MoU to set up a coordination committee but the proposal could not take off.

The committee would help in managing the resources of the institutes, she said.