Lok Sabha approves accountancy Bill: FM says changes won’t impact autonomy of institutes

The Lok Sabha on Wednesday approved a Bill to rejig the functioning of the institutes of chartered accountants, cost accountants and company secretaries. 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 bodies.

Union finance and corporate affairs minister Nirmala Sitharaman asserted that the changes will not infringe upon the autonomy of these bodies. It will enhance the quality of audit and improve the country’s investment climate, the minister said. 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 (ICSI).

The Bill, which amends the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959, and the Company Secretaries Act, 1980, was later passed by the Lower House after rejecting the amendments moved by the opposition members. Among other things, the Bill provides for setting up of a coordination committee headed by the corporate affairs secretary. It will have representations from the three institutes.