ICAI Sets New Standards for Overseas Networks

The Institute of Chartered Accountants of India (ICAI) is taking significant steps to formulate guidelines for overseas networks, with a special focus on consulting services. This initiative aims to create a robust framework for domestic firms to join global networks, thereby enhancing their international footprint. The ICAI Council, the supreme decision-making body, is scheduled to deliberate on these detailed norms by the end of this month.

Global Firms Express Concerns Over New Norms

While the ICAI has already introduced revised guidelines for mergers, demergers, and the aggregation of LLP firms in the audit sector, the latest proposals might spark debates with global audit and consulting giants, notably the Big Four. These firms, operating in a regulatory gray area, fear the new rules could impose registration requirements and restrict advertising and sponsorships.

Empowering Domestic Firms to Compete Globally

The Indian government and ICAI are collaboratively working on norms and a regulatory framework designed to empower large domestic firms to not only rival their foreign counterparts but also establish a presence on the global stage. Additionally, smaller firms with limited partners are encouraged to scale up by extending their services beyond their current operational cities through partnerships.