The Institute of Chartered Accountants of India is drafting proposals to help domestic firms scale up and compete with global networks. The plan includes allowing multidisciplinary partnerships, facilitating capital infusion, and launching a digital platform called CA Setu, with proposals expected within two months.
The Institute of Chartered Accountants of India (ICAI) is preparing a comprehensive reform package designed to transform the scale and capability of domestic accounting firms. The goal is to create large, flexible Indian entities capable of competing directly with global professional-services networks in areas like auditing, consultancy, and transaction advisory.
The proposed framework, expected within two months, aims to move beyond traditional accounting structures. A major highlight is the plan to allow multidisciplinary partnerships. This would permit accounting firms to integrate other professionals—such as company secretaries, cost accountants, advocates, engineers, actuaries, and architects—into their service offerings. By broadening the scope of services, the ICAI hopes to help domestic firms offer the same wide-ranging solutions that global networks currently provide.
Another significant challenge being addressed is the availability of capital. Domestic firms have historically faced structural constraints that limit their ability to invest heavily in technology, specialized talent, and wide geographic footprints, unlike their globally connected peers who operate with larger balance sheets. The ICAI's recommendations include formal mechanisms for capital infusion and infrastructure support to help Indian firms overcome these funding hurdles.
To drive this transition, the institute is developing a digital platform named CA Setu. This tool is designed to connect chartered accountants and firms with opportunities for mergers, networking, referrals, and specialization. By using technology to facilitate aggregation, the ICAI wants to enable smaller units to combine resources and build larger, more competitive practices.
Regulatory changes will also be on the agenda, as the ICAI reviews its existing guidelines from 2006 regarding practice in corporate form. These updates, along with potential amendments to the Chartered Accountants Act, will require coordination with the Ministry of Corporate Affairs and potentially Parliament. The institute is also looking to remove barriers that currently limit chartered accountants from taking on certain government consulting assignments.
For investors and corporate India, these reforms are significant because they may lead to the emergence of stronger domestic audit and advisory firms. While these changes target the professional-services ecosystem rather than a specific stock, they could impact the quality, choice, and cost of audit and advisory services available to listed companies in the future. The next phase will be the official release of the proposals and the subsequent timeline for legislative approvals.