Sonam Rana updated Content Curator updated
Content Curator updated
New Delhi: Parliamentary Standing Committee on Finance has suggested to the Indian Institute of Technology and Indian Institute of Management to set up an accounting institute for the development of the finance and accounting profession in India.
The parliamentary panel noted that a single institute has statutory monopoly power over accounting professional qualification and licensing in the country and that multiple bodies, similar to those in advanced countries, are needed to promote healthy competition and improve the credibility of financial reporting.
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About Parliamentary Committee Report
At the time of presenting the report on ‘Chartered Accounts, the Cost and the Works Accounts and the Company Secretaries (Amendment) Bill, 2021’, the proposed condition that disciplinary committees should not be led by members of the three institutes, according to the panel, does not materially reduce the institutes' professional autonomy.
The Bill proposes that the regulatory committees of the different apex institutes be headed over by a non-chartered accountant, non-cost accountant, and non-company secretary. Furthermore, the government has suggested that each committee have three nominated members who are not affiliated with the institute in question.
The Institute of Company Secretaries of India (ICSI) says that rather than regulations, requirements for selecting the presiding officer and members of disciplinary committees should be stated by rules.
According to the panel, the planned coordination committee between the three institutes' rules of formation might be reviewed to the point where it could be chaired by a prominent person from industry, finance, or business who is not a member of any of the three institutes in question.
The coordination committee would be chaired by the secretary of the ministry of corporate affairs, according to the bill.
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