The Institute of Chartered Accountants of India (ICAI) has approved a new draft regulatory framework enabling domestic chartered accountant (CA) firms to enter formal partnerships with foreign accounting networks operating in the country.
The policy aims to boost the global competitiveness of Indian firms, aligning with the government’s objective of fostering home-grown accounting firms with international recognition.
The approved draft outlines clear procedural guidelines for global collaborations, including mandatory registration with the ICAI for Indian CA firms entering such partnerships.
The draft framework also mandates the appointment of a senior partner as a nodal officer to ensure compliance with ICAI regulations.
Furthermore, the regulatory body said the firms should make disclosures of details such as firm names, registration numbers, shareholding structures, and financial statements annually.
Indian CA firms must also adhere to the ICAI’s ethical and compliance standards, even when engaged in international collaborations, the draft framework says.
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By GlobalDataICAI president Charanjot Singh Nanda said that the apex council has approved the draft regulations, with stakeholder consultations set to begin shortly.
Nanda added: “This is a significant milestone in taking Indian CA firms to the global tier. Through international networks, our professionals will have access to a bigger toolkit and operate to world class standards.”
The framework is expected to be officially notified in July 2025, after incorporating public feedback.
Previously, no formal policy existed to regulate partnerships between Indian and foreign audit or advisory firms, leading to inconsistent collaborative arrangements that lacked clear compliance with independence and objectivity standards.
The new framework aims to provide structure and credibility, enabling Indian accounting firms to attract international clients, leverage foreign expertise for global assignments, and expand their operations internationally.
Earlier in May 2025, ICAI teamed up with the Securities and Exchange Board of India to combat corporate frauds.
