The Institute of Chartered Accountants of India has introduced a new Standard on Sustainability Assurance 5000 (SSA 5000) that will come into effect from April 1, 2027. According to NDTV Profit, the new standard sets out general requirements and a framework for assurance engagements covering sustainability-related disclosures by companies and other entities. SSA 5000 will apply to information covering areas such as climate, labour practices and biodiversity, with the objective of providing greater consistency and credibility to sustainability disclosures. As per ICAI President Prasanna Kumar D, the new framework is expected to strengthen confidence among investors and other stakeholders. The standard has been developed as a principles-based framework that expands the scope of sustainability assurance while accommodating India's diverse reporting frameworks.
The Institute of Chartered Accountants of India is preparing to approach the government with proposed changes to the Chartered Accountants Act that could enable larger Indian accounting and consulting firms. According to reports from The Economic Times, this initiative comes as the Centre pushes to create large local consulting entities capable of competing with the global 'Big-4 firms' - EY, Deloitte, KPMG and PwC. The Prime Minister's Office has held multiple deliberations on regulatory changes needed to help domestic firms scale up and capture a share of the $240-billion global auditing and consultancy market. As per The Economic Times, ICAI plans to propose reforms within two months to help Indian accounting firms scale up and compete globally, with the proposals including recognising aggregation structures, enabling capital infusion into Indian accounting firms, and easing rules on non-assurance services. The broader set of policy recommendations seeks formal recognition for aggregation structures, infrastructure support and capital infusion for Indian CA firms, and the removal of barriers faced by accountants undertaking government consulting assignments.
For the first time since ICAI's establishment in 1949, the central council is considering comprehensive changes to the Chartered Accountants Act, rules, and schedule. According to Loktej Business, Satish Kumar Gupta, a member of ICAI's central council, confirmed that the relevant committee will prepare the final draft within two months and send it to the council for approval. After council approval, the draft will be sent to the Ministry of Corporate Affairs, which will forward it to the government with amendments. The final draft will then be presented to Parliament after cabinet approval. Gupta provided an example of the proposed changes, stating that ICAI believes that if a member is engaged in consultancy work, they should be exempt from the strictest rules applicable to chartered accountants, with similar rules applying as those for consultants in other professions. Strict laws should only apply to those who perform audit work.
ICAI is working on amendments to networking guidelines for CAs that will allow CA firms to network with firms from other professions. Currently, a CA firm is not allowed to network with firms from other professions, but after the guidelines are amended, this restriction will be removed. According to Loktej Business, this issue has already been discussed in the ICAI committee and will be presented to the committee, with the government making a final decision on it. The expanded framework will allow networks to onboard multidisciplinary entities, including company secretaries, cost accountants, advocates, engineers, architects and actuaries, alongside ICAI-registered multidisciplinary partnerships and other professional entities. This approach aims to widen expertise and service capabilities and create firms of greater institutional scale.
Recent measures taken by ICAI show significant progress in scaling up domestic accounting firms. As per The Economic Times, 1,000 CA firm mergers were approved between February and August 2026, demonstrating strong momentum in consolidation efforts. Similarly, the networking model is taking shape with 10 such structures coming up between February and August 2026. Additionally, 18 management consultancy companies have been registered with ICAI in the same period, indicating growing interest in multidisciplinary partnerships. An ICAI official noted that the institute would require more support of the government to unlock scale in domestic CA firms, including recognition of aggregation structures, removing impediments in government consulting work, infrastructure, and capital infusion for Indian CA firms as well as tax incentives for aggregation. According to NDTV Profit, the ICAI, which sets standards for various professional activities, has more than five lakh members.
