Nod to CFA exams: Students still keep fingers crosed

The Delhi High Court's decision to allow US-based Chartered Financial Analyst (CFA) Institute to conduct its exams in India has not provided any succour to the Indian students of the institute. The exams are scheduled on June 8.

A communication on the institute's India website asked the students not to change their travel plans. "...we will update the candidates as soon as we have more information," it reads, adding that the institute is considering the option to hold the exams in Mumbai in addition to the test centres already established in other countries.

Around 5,000 CFA students from India are expected to take the exam at locations like Kathmandu, Dhaka, Colombo, Singapore, Thailand, Hong Kong and the United Arab Emirates. Each candidate will have to shell out around Rs 50,000 on ticket and accommodation.

For example, a Bangkok air ticket would cost around Rs 16,000 and accommodation Rs 20,000-30,000. The cost of writing the exam in Singapore would be roughly the same.

"We are not cancelling our reservations. I have done my bookings in Bangkok. If something goes wrong with the CFA Institute's case in India, I will lose another year. Last year, due to the court case between the Institute and the AICTE (technical education regulator), I missed my exams," says Nayan Kumar, an equity research analyst with a Mumbai-based broking firm. Around 60 students would fly to Bangkok to take the exam.

"This is a tricky situation. We understand that the institute will need time to get ready for conducting the examinations in India. The centres need to be finalised and fresh hall-tickets issued. But we also have to consider the time taken to get a visa. This is just chaotic," says Raman Kapoor, a financial advisor with a firm.

The CFA institute says it will come out with a formal communication in a couple of days. "There are logistical issues involved which need to be sorted out. We are planning a conference call with the US office and as soon as a decision is taken, it will be communicated to the students," said a CFA institute official.

The CFA institute has been operating in India for over 10 years.

Though the court allowed the institute to conduct the exams in India last year, it was not given permission to conduct the December examinations in India.

Despite the cost structure of the programme and its ongoing struggle with AICTE, the CFA programme is popular in India.

"A CFA degree gives you international appeal. No programme in India gives you that kind of quality. This programme is more about application and gives you an edge to further your career," says Jay Kumar, a financial analyst with a multinational firm in India.

For levels I and II, the enrolment and exam fee is $990 (Rs 39,600) and $1,078 (Rs 43,120), respectively. The level III fee is $1395 (Rs 55,800).

Last year, the institute had refunded around $300 to students taking their exams abroad. The Delhi High Court had, in December 2007, dismissed the CFA Institute's petition against the AICTE asking the institute to seek the technical education regulator's approval to operate in India.

The CFA institute sought an appointment with the AICTE in the last week of December 2007. But there has been no word from the regulator body yet.