The Institute of Chartered Accountants of India (ICAI) is preparing to lift its decades-old ban on advertising by chartered accountants (CAs). This reform, confirmed to ETCFO by insiders, signals a major departure from the traditionally conservative norms that have governed the accounting profession since the ICAI’s inception in 1949.
The ban—enshrined in Clause 6 of the First Schedule to the Chartered Accountants Act—has long prevented CAs and CA firms from promoting their services publicly, unlike their counterparts in law, consulting, and international accountancy firms. The proposed relaxation is being viewed as a long-overdue step to level the playing field and enable Indian firms to gain visibility in a market dominated by global players.
Experts Welcome Branding Push but Warn of Structural Constraints
While the profession is welcoming this regulatory rethink as a “step in the right direction,” many industry experts stress that lifting the advertising ban alone will not be enough to build globally competitive Indian accounting firms. Key stakeholders argue that broader structural reforms are necessary to empower CA firms to grow, scale, and compete with international giants like Deloitte, EY, PwC, and KPMG.
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“The ban on advertising restricted Indian firms from creating a brand identity. But branding alone doesn’t create global firms. There needs to be room for consolidation, external investment, and operational flexibility,” said a senior partner at a leading Indian CA firm.
Analysts have pointed out that despite being the second-largest pool of CAs in the world, India lacks even a single firm that can rival the scale and international reach of the Big Four. To change this, experts advocate enabling firm mergers, allowing multi-disciplinary partnerships, removing caps on the number of partners, and permitting more professional freedom in structure and service offerings.
Need for Overhaul: Reforming 75-Year-Old Laws for Global Ambitions
Many critics believe the current regulatory framework—rooted in a 75-year-old law—has become outdated in the age of globalization and digital transformation. ICAI’s existing rules limit innovation, restrict financial growth models, and prevent Indian firms from integrating advanced technologies and diversified services into their portfolios.
To address this, experts are pushing for a comprehensive overhaul of the Chartered Accountants Act, including amendments that allow more autonomy in firm operations, flexibility in ownership structures, and global collaboration. They also emphasize the importance of fostering an ecosystem where Indian firms can attract and retain top talent, invest in digital capabilities, and expand into international markets.
As India aspires to create its own “Indian Big Four,” the lifting of the advertising ban could be the first domino in a series of necessary reforms. However, unless these deeper regulatory challenges are tackled, the country’s dream of building accounting powerhouses that can stand shoulder-to-shoulder with global firms may remain unfulfilled.