The Institute of Chartered Accountants of India (ICAI) is considering lifting its long-standing ban on advertising by Chartered Accountants (CAs). The proposed reform, if implemented, would align India with global standards and empower domestic firms to compete internationally in advisory and consulting services.
A high-level committee, formed under ICAI President CA Charanjot Singh Nanda, is currently reviewing amendments to the Code of Ethics under the Chartered Accountants Act, 1949, which prohibits any form of advertising by CAs to maintain the dignity and independence of the profession.
Why It Matters
- Current Status: Indian CAs are barred from advertising services-unlike their global counterparts.
- Global Vision: The government aims to create "Indian Big Fours" in the professional services sector.
- Proposed Shift: Allow branding and advertising for non-assurance services like consulting, ESG, M&A, and financial transformation.
Support for the Move
Former ICAI President Aniket Talati hailed the move as a "step in the right direction," noting that audit services may not require advertising, but branding is essential for advisory services to scale globally.
"No global giant has been built on the strength of audit alone. Indian firms need the freedom to showcase their capabilities," Talati said.
Similarly, Amarjit Chopra, another past ICAI head, acknowledged that while the move is overdue, it could disproportionately benefit larger firms with the financial muscle for widespread advertising.
"Media advertisements will favor firms that can afford them," Chopra cautioned, urging the ICAI to ensure a level playing field.
Need for Deeper Reforms
Former ICAI Secretary Ashok Haldia called for a complete overhaul of the outdated regulatory framework. He criticized the current rules as ineffective, citing the use of surrogate advertising by multinational firms while Indian entities remain constrained.
"The 75-year-old framework needs transformation, not tinkering," Haldia asserted.
Branding in an AI-Driven World
CA Nitin Bansal, State President of CA-Cell BJP Haryana, emphasized that branding is now a necessity, especially in an AI-driven global market.
"Without a strong brand presence, Indian CA firms will struggle to attract international clients," he warned.
He also urged the ICAI to train firms in cross-border compliance, international business development and new technologies.
Challenges: Unequal Access and Ethical Risks
While there is broad support, some experts raised concerns. Rajat Mohan, Senior Partner at AMRG & Associates, warned that smaller CA firms could be pushed out due to a lack of marketing infrastructure.
"Advertising could bring ethical risks and financial strain for MSME CA firms," he said, advocating for strict ethical norms and balanced implementation.
More Than Advertising: Rethinking Performance Pay and Alliances
Experts also argued that performance-linked remuneration should be allowed in non-assurance services-standard practice internationally but currently restricted in India.
"The Code of Ethics must evolve. Measurable outcomes should drive advisory compensation," Rajat Mohan noted.
Both Talati and Haldia supported firm mergers over loose alliances to create larger, more competitive Indian entities.
A Strategic Leap Toward Indian Big Fours
This policy rethink dovetails with the government's push to build globally recognized Indian accounting firms that rival the Big Four. Experts believe that lifting advertising bans-combined with broader structural reforms-will unlock the next wave of growth for the professional services sector.
"The world is moving forward. It's time for the Indian accounting profession to evolve too," Talati concluded.
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