CAs to face Assessment Test, if they don’t seek membership for 3 years : ICAI Draft Regulations

The ICAI has issued draft regulations proposing amendments in Regulation 4 and 19 of the existing Chartered Accountants Regulations, 1988 to provide that :

  1. a person who makes an application for membership of the Institute after 3 years or more from the date of his passing the final examination ; (regulation 4)
  2. person who makes an application for restoration of his name after 3 years or more from the date of removal of his name, (regulation 19),

shall be required to appear and pass such Assessment as may be approved by the Council from time to time.

Editorial Notes : In short, the CA Final pass-outs not seeking membership within 3 years, shall have to pass an assessment test before applying for membership.

Similarly, persons whose name is removed from membership register (due to non-payment of fee falling u/s 20(1)(c)) for a period of 3 years or more shall have to pass assessment test.

 

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

NOTIFICATION

New Delhi, the 14th September, 2020

No.1-CA(7)/195/2020.—The following draft of certain regulations further to amend the Chartered Accountants Regulations, 1988, which the Council of the Institute of Chartered Accountants of India proposes to make, is hereby published, as required by sub-section (3) of section 30 of the Chartered Accountants Act, 1949 (38 of 1949) for the information of all persons likely to be affected thereby; and notice is hereby given that the said draft regulation shall be taken into consideration after the expiry of a period of forty-five days from the date on which the copies of the Gazette of India, in which these draft regulations are published, are made available to the public;

Any person desiring to make any objection or suggestion in respect of the said draft regulations, may forward the same to the Council of the Institute of Chartered Accountants of India within the period so specified addressed to the Acting Secretary, the Institute of Chartered Accountants of India, ICAI Bhawan, Indraprastha Marg, New Delhi – 110 002;

Any objection or suggestion which may be received from any person with respect to the said draft regulations before the expiry of the period so specified shall be taken into consideration by the Council.

Draft Regulations

1. (1) These regulations may be called the Chartered Accountants (Amendment) Regulations, 2020.

(2) They shall come into force on the date of their final publication in the Official Gazette.

2. In the Chartered Accountants Regulations, 1988, –

I. In Regulation 4:

(i) The existing regulation 4, shall be numbered as sub-regulation (1);

(ii) After so numbered sub-regulation (1), the following shall be inserted as sub-regulation (2), namely,-

“(2) Notwithstanding anything contained in clause (a) or (b) of sub-regulation (1), a person who makes an application for membership of the Institute after a period of three years or more from the date of his passing the final examination and comply with other provisions of these regulations, shall be required to appear and pass such Assessment as may be approved by the Council from time to time.”

II. In regulation 19, after sub-regulation (1), the following proviso shall be inserted, namely,-

“Provided that a person who makes an application for restoration of his name after a period of three years or more from the date of removal of his name shall be required to appear and pass such assessment as may be approved by the Council from time to time.”

RAKESH SEHGAL, Acting Secy.

[ADVT.-III/4/EXTY./219/2020-21]

REGULATION 4 (incorporating draft amendment) :

Qualification of members

4. [(1)] Subject to the provisions of sections 4 and 8 of the Act, a person shall be entitled to have his name entered in the Register if he, –

(a) has completed the practical training as provided in these regulations and passed the final examination as specified in Schedule `B’; or

(b) has completed the practical training as provided in these regulations, completed such course(s) and passed the final examination as per the syllabus as may be specified by the Council; or

(c) possesses qualifications recognised by the Council as equivalent to the practical training and examinations referred to in clause (a) or (b) above.

[(2) Notwithstanding anything contained in clause (a) or (b) of sub-regulation (1), a person who makes an application for membership of the Institute after a period of three years or more from the date of his passing the final examination and comply with other provisions of these regulations, shall be required to appear and pass such Assessment as may be approved by the Council from time to time.]

REGULATION 19 (incorporating draft amendment) :

Restoration to membership

19. (1) The Council may, on an application in the appropriate Form*, received in this behalf from a member whose name has been removed from the Register under clause (c) of sub-section (1) of section 20, restore his name, if he is otherwise eligible to such membership, on his paying the arrears of annual membership fee, entrance fee and additional fee determined by the Council under the Act.

[Provided that a person who makes an application for restoration of his name after a period of three years or more from the date of removal of his name shall be required to appear and pass such assessment as may be approved by the Council from time to time.]

(2) The restoration under sub-regulation (1) shall be with effect from the date on which the application and fee are received:

Provided that where such an application for restoration, complete in all respects, is received within the same year in which the name was removed, the Council may restore the name on his paying the annual membership fee due for that year, entrance fee and the additional fee for restoration, with effect from the date on which it was removed from the Register:

Provided further that the restoration of a member’s name which was removed under the orders of the Board of Discipline or the Disciplinary Committee or the Appellate Authority or the High Court shall be effected only in accordance with such orders.

Section 20(1) of the CA Act, 1949 :

20. Removal from the Register

(1) The Council may remove from the Register the name of any member of the Institute−

(a) who is dead; or

(b) from whom a request has been received to that effect; or

(c) who has not paid any prescribed fee required to be paid by him; or

(d) who is found to have been subject at the time when his name was entered in the Register, or who at any time thereafter has become subject, to any of the disabilities mentioned in Section 8, or who for any other reason has ceased to be entitled to have his name borne on the Register.

READ COPY OF GAZETTE

ICAI Membership Draft CA Regulations 3 Years Fee Final