Image Source: ET CFO
Key Highlights
The Institute of Chartered Accountants of India (ICAI) is on the verge of a historic shift—preparing to lift its decades-old ban on advertising by Chartered Accountants. This move, confirmed by ICAI and industry insiders, is seen as a step toward making Indian CA firms more globally competitive and visible in the modern professional services landscape.
• nWhy Now? The Push for Global Competitiveness
The current ban, rooted in the Chartered Accountants Act, 1949, was designed to protect the profession’s integrity and prevent misleading promotions. However, with India aspiring to build homegrown accounting giants capable of rivaling the global Big Four, experts argue that restrictive advertising rules have become a barrier to growth and innovation.
ICAI President CA Charanjot Singh Nanda has formed a group to review the Code of Ethics, signaling openness to modernizing public engagement norms for CAs. The first meeting on this was held on July 2, 2025.
Branding vs. Audit: What Changes, What Stays
Experts emphasize that while audit and assurance work should remain free from promotional activities to uphold trust, advisory and consulting arms must be allowed to showcase their expertise—mirroring global practices.
Former ICAI president Aniket Talati notes that branding is essential for advisory growth in areas like ESG, M&A, and financial transformation, and that no global giant has been built on audit alone.
• Opportunities and Challenges
Larger firms with deeper pockets may benefit more from advertising, potentially widening the gap with smaller practices. Ethical guidelines will be crucial to prevent misuse and protect the profession’s dignity.
The move is also expected to help Indian firms expand internationally, especially as the government pushes for the creation of Indian Big Four-style firms.
• Calls for Broader Reform
Experts insist that advertising is only the first step. They urge ICAI to revisit outdated regulations, allow firm mergers, enable performance-linked pay in non-audit services, and permit Indian firms to join global networks while retaining Indian ownership and control.
Without comprehensive reform, India risks missing out on cross-border opportunities and the chance to build true global accounting champions.
• The Road Ahead
As the ICAI prepares to break with tradition, the profession stands at a crossroads: embrace broader reforms or risk being left behind in the global race for professional services leadership.
Sources: Economic Times (ET CFO), StudyCafe, Financial Express
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