Advertising guidelines for CAs under revision: ICAI president Charanjot Singh Nanda
July 30, 2025
ICAI is revising advertising guidelines for CAs amid efforts to help Indian firms rival global Big Four. President Charanjot Singh Nanda discusses structural reforms, global networks, sustainability audits, NFRA oversight, and income tax law suggestions in an exclusive interview.
As a self-regulatory body, the Institute of Chartered Accountants of India (ICAI) had a monopoly on the governing of accountants and auditors for a long time until National Financial Reporting Authority (NFRA) came into the scene. With the government making efforts to create “India’s own Big Four firms”, the ICAI is putting all efforts to achieve the daunting mission. ICAI president Charanjot Singh Nanda spoke about these issues as also the regulatory framework required to create large audit firms out of India, and the impending revisions in advertising guidelines for chartered accountants (CAs) in an interview with Manu Kaushik. Edited excerpts
Q. What kind of regulatory interventions are being planned by the ICAI to enable Indian CA firms to grow big and compete with Big Four?
We are positioning CA firms to evolve as credible and independent institutions in their own right. We are at the forefront of initiating structural and strategic reforms aimed at strengthening the professional ecosystem. The ICAI (merger & demerger of CA firms) guidelines are a significant milestone in this direction – introducing provisions such as legal heir nomination for succession planning that promotes continuity and long-term vision within firms.
In addition, we are actively developing new models designed to streamline procedures and stimulate growth across the profession. The recently-notified ICAI (aggregation of LLPs) guidelines enable firm consolidation, promote collaborative practice and facilitate resource pooling to enhance scalability. In addition, the draft guidelines for overseas networks, which is currently placed in the public domain for comments, seeks to facilitate global collaboration. Through these reforms, we are creating a regulatory ecosystem that helps CA firms to consolidate and collaborate both domestically and globally while remaining anchored in ethical governance and professional independence.
Q. What are the key enabling provisions in the networking guidelines which will help Indian CA firms to grow in size?
Under the guidelines for networking of Indian CA firms 2021, the firms can collaborate through three distinct models such as alliance model, network model, and lead firm model. Each of the model is designed to facilitate operational scale, shared practice, and knowledge integration. These models provide for regulated collaboration while allowing firms to retain their individual legal identity. Across all models, the framework ensures key enablers such as resource sharing, joint branding, professional independence and flexibility in engagement.
On the international front, the draft guidelines for overseas networks represent our approach towards fostering global integration without compromising the sanctity of domestic professional standards and regulatory safeguards.
We understand that global integration is essential in an interconnected professional landscape. Hence, the framework seeks to enable Indian CA firms to associate with overseas networks or entities through a regulated structure that upholds the provisions of the CA Act and Code of Ethics.
Q. Is it possible to become a part of a larger network if foreign firms aren’t allowed to have stakes in domestic firms?
CA firms can be part of global networks through associations that align with our regulatory framework and uphold the principles of professional independence and regulatory compliance. The draft guidelines for overseas networks provide a clear mechanism for such affiliations, enabling Indian firms to associate with international networks while continuing to operate strictly within the scope of provisions of the CA Act.
Q. ICAI is mulling allowing CAs to advertise. What’s the status of this proposal?
The institute’s council has powers to formulate guidelines of advertisement for our members. The council had issued advertisement guidelines in 2008. Thus, the CAs and CA firms can already advertise as per the rules.
Due to the recent developments in the profession, it is required to make the advertisement guidelines more contemporary. From this standpoint, the advertisement guidelines are under revision, which will be done through due process and will take care of not only the needs of the time but also the sensitivities which are involved. In July, we formed a group to look into this matter.
Q. What is ICAI’s stance on the CAG’s move to enrol private CAs for audit work?
We have reviewed the CAG’s tender document and it is evident that CAG has not outsourced its audit responsibilities to private firms. The tender clearly says that the empanelled CA firms are engaged to work with the CAG audit teams. They are only assisting in the execution of audits of financial statements.
The idea to involve another independent expert in the audit process is a well-known practice. It is entirely in line with global audit practices to utilise external expertise for data collection, field-level audit assistance, or sector-specific matters. However, such assistance does not imply outsourcing the audit judgment which always lies with the CAG.
Q. The audit profession is under a lot of stress with NFRA tightening its grip on the auditors. Do you think there’s been a regulatory overreach over the past few years?
Auditing is a serious business, and when you undertake serious business, there are certain issues that may crop up, and one has to resolve that. Largely, we have been lending yeoman services to the corporates in areas like auditing, assurance, accounting, management consulting, and many other services, so there is no such issue I feel.
We are always ready to improvise ourselves, and as an institute, we have been training our members, giving them the best knowledge in technology, artificial intelligence, blockchain so that they would effectively use their acumen to create value.
Q. What’s the status of ICAI’s investigation on Gensol and IndusInd Bank?
The financial reporting review board (FRRB) is reviewing the financial statements and auditor’s report of Gensol Engineering Limited and Blu-Smart Mobility for FY24 as well as IndusInd Bank for FY24 and FY25. These reviews are currently in progress and are expected to be completed in the next few months.
The board conducts a desktop review of the entity’s financial statements which is entirely based on information available in the published financial statements and auditor’s report. Further, the FRRB does not interact with the entity and concerned auditors in its review process. It may be noted that the board does not carry out a re-audit or any investigation of the financial statements audited by the statutory auditors.
Q. What are your recommendations on the income tax bill?
We have submitted a memorandum of suggestions on the income tax Bill to the select committee for examining the bill in April this year. It comprises the conceptual changes like actual rent to be considered as annual value, taxing salary on receipt basis, etc. There are also structural changes like further consolidation of provisions to reduce the number of sections.
We have asked for the removal of dual penalty and rationalisation of penal provisions and prosecution provisions. The prosecution provisions might be restricted to cases of concealment of income or unjust enrichment. In addition, we have suggested clarifications in provisions relating to charitable trusts.
Q. ICAI’s Sustainability Reporting Standards Board has been involved in formulating sustainability audits. What is the level of preparedness among the Indian audit community in the area of sustainability reporting?
Recognising the evolving global and domestic landscape, we have taken proactive steps to position CAs as strategic leaders in ESG and sustainability reporting. ICAI, through its SRSB, maintains active engagement with regulators like the Sebi, ministry of corporate affairs, RBI, international financial services centres authority (IFSCA), and international standard-setters such as the IFRS Foundation and ISSB. These engagements involve technical inputs, alignment with global frameworks, and shaping policy directions.
In addition, the SRSB has developed practical frameworks to guide CAs in undertaking sustainability assurance engagements. We have also launched a carbon emission calculator in early July. This innovative, free, dynamic, and user-friendly tool is designed to empower individuals and organisations to accurately measure and effectively manage their carbon footprint.
The SRSB regularly conducts workshops, webinars, seminars, and certificate courses to enhance the knowledge and skills of CAs and other stakeholders in sustainability reporting and assurance.
[The Financial Express]
