Institute of Chartered Accountants of India (ICAI) on Tuesday said the decision to refer a bill to amend the law governing chartered accountants to a Parliamentary standing committee was a good step and the institute will put across its concerns over certain provisions of the proposed legislation before the panel.
On Tuesday, the Lok Sabha referred the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2021 to a Parliamentary standing committee for scrutiny.
The bill seeks to amend the laws governing chartered accountants, cost accountants and company secretaries.
The ICAI had raised concerns with regard to the proposal to have a non Chartered Accountant (CA) as the presiding officer of the disciplinary committee.
Against this backdrop, ICAI President Nihar N Jambusaria on Tuesday said the institute was happy that the bill has been referred to a Parliamentary standing committee. "It is a good step in the right direction," he said.
The institute did not have any major issues with any provisions except for the disciplinary mechanism. "We will put up our views (before the committee)," he noted.
Under the current law, the committee has two government nominees and three members from the ICAI council. The bill has proposed to include two CAs and three non-CAs.
"ICAI has a reservation on having a non CA as the Presiding Officer as a thorough knowledge of Accounting, Auditing and Ethical Standards and experience in the practice of at least 15 years is required to arrive at the right judgement in a disciplinary case. We have recommended that the current practice of having President or Vice President of ICAI as the Presiding Officer be continued," he had said on December 17, the day the bill was introduced in Lok Sabha.