Centre introduces Bill to strengthen disciplinary process of CA, CS Acts

The Bill proposes a time limit for resolving cases under investigation

In a move that would seek to both empower and strengthen their disciplinary mechanisms, the government on Friday tabled the bill to amend the laws governing the services of chartered accountants, company secretaries and cost accountants in the Lok Sabha.  

Chartered accountants, cost accountants and company secretaries come under the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959 and the Company Secretaries Act, 1980, respectively.

The bill has proposed a time limit on resolving cases under investigation and enabled the institute of chartered accountants of India to take action not just against the individuals but also against firms for lapses. 

It has also proposed reconstitution of disciplinary benches requiring non- chartered accountants (CA) to be appointed among three out of five members and the presiding officer too to be a non CA pr president of ICAI. All five names however will be recommended by ICAI.  

“The ICAI had shared its reservation with the Ministry only on one of the points of the CA Amendment bill,  with regards to the Constitution of Disciplinary Committee,” said Nihar Jambusaria, president, ICAI. 

The term of the Council is proposed to be changed from three to four years. ICAI will also be required to maintain a Register of Firms, practicing chartered accountant firms in addition to the Register of Members that is already maintained by the ICAI. 

Finance and Corporate Affairs Minister Nirmala Sitharaman, said that on account of changes in the country's economic and corporate environment, it has become necessary to amend the Acts while tabling the bill.