ICAI should open up, says Murthy

The Institute of Chartered Accountants of India ( ICAI) would be able to take on the challenges of the globalising world by opening to the foreign competition.

"The institute must remove any kind of restrictive policy. It is only by allowing foreign firms to operate in India would the domestic chartered accountants be able to gain access to international markets," N R Narayanmurthy, chairman and chief mentor of Infosys Technologies said at the 54th annual function of the ICAI.

Giving instance of Infosys Technologies, he said that the company could not have risen to such heights if it had shied away from competition.

Adapting to changing environment was the key to success, he said.

The institute has been complaining of unfair competition from multi national accounting firms and have been making efforts to restrict their entry.

The institute seems to be alienated on this issue as even the government does not approve of the restrictive tactics of the institute.

In fact, M M K Sardana, secretary, department of company affairs had echoed same sentiments as Narayanmurthy, recently.

Narayanmurthy also said that the institute should improve its training facilities by bringing in foreign instructors as the part of their teaching faculty.

It should also conduct courses in internationally accepted standards, improve access of members to international publications and facilitate accreditation of members international accounting authorities.

R Bupathy, president of ICAI chose the occasion to reiterate the institute's opposition to the government attempt at curbing its autonomy.

The government had recently tabled a Bill in Rajya Sabha, which bound the institute to the directions given by the centre.

Bupathy also said that the institute had already represented its case to the department of company affairs and was awaiting a reply.

The main points that had been presented were bill provisions relating to empowering the government to give directions to the institute, the functions of the quality review board which has been given the authority to set standards among other issues and drafting errors.