Draft of Chartered Accountants (Amendment) Regulations, 2020.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
New Delhi, the 23rd September, 2020
No. 1-CA(7)/196/2020.—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. For regulation 51 of said regulations, the following regulation shall be substituted, namely:-
   ―51. (1) An articled assistant who has passed the Intermediate (Professional Competence) Examination or Professional Education (Examination-II) or Intermediate examination and has completed a
   minimum of eighteen months of practical training under these regulations shall be eligible for industrial training.
   (2) An articled assistant may, at his discretion, serve as an industrial trainee for the period specified in sub-regulation (4) in such offices of the Central or State Governments, Central statutory and judicial authorities, regulatory bodies, banking companies and such other departments of central or state governments, institution or organisation as may be decided by the Council from time to time;
   or in any of the financial, commercial, industrial undertakings with minimum fixed assets or minimum total turnover or minimum paid-up share capital as may be approved by the Council from time to time.

(3) An articled assistant shall intimate to his principal his intention to take such industrial training at least three months before the date on which such training is to commence.
(4) The period of industrial training may range between nine months and eighteen months.
(5) The industrial training shall be received under a member of the Institute. An Associate who has been a member for a continuous period of at least three years shall be entitled to train one industrial trainee at a time and a fellow shall be entitled to train two industrial trainees at a time, whether such trainees be articled assistants or audit assistants.
Provided that in the case of the Central or State Governments, Central statutory and judicial authorities, regulatory bodies, banking companies and other departments of central or state governments, institution or organisation, if no member of the Institute referred to in this subregulation
is available, the industrial training can be imparted by such an officer of that Government, Authority, Body, Bank, department of central or state government, institution or organisation, as may be recognised by the Council from time to time.
Provided further that the entitlement of such officer to train the industrial trainee shall be determined by the Council from time to time keeping in view the number of years of service and the nature of services being rendered by the department concerned.
(6) An agreement of training shall be entered into in the form approved by the Council.
(7) On satisfactory completion of the industrial training, the member training the industrial trainee, shall forthwith issue to the trainee a certificate in the form approved by the Council in respect of
the training undergone under him and forward a copy thereof to the Secretary.
Provided that if such industrial training is imparted by an officer recognized by the Council under sub-regulation (5), the industrial trainee shall obtain a certificate in the form approved by the Council from such officer and shall forward a copy thereof to the Secretary.
(8) The period of industrial training referred to under this regulation, shall be treated as service under articles for all purposes of these Regulations, provided the certificate referred to in sub-regulation (7) is produced.
(9) Notwithstanding anything contained in this regulation and subject to the provisions of sub-regulation (1), an articled assistant may also serve as an industrial trainee for a period ranging from six to eighteen months in any foreign country under a member of the accountancy body in that
country recognized by the International Federation of Accountants in such manner as may be determined by the Council from time to time.
(10) A member or Officer, with the consent of industrial trainee serving under him, may depute the latter for industrial training for a period of three months in any foreign country, in such manner as may be determined by the Council.
(11) The industrial trainee shall be paid such monthly stipend as may be agreed mutually between the industrial trainee and the member or officer imparting the industrial training.‖;

II. In regulation 54 of the said regulations, in sub-regulation (5), for the words ―shall not exceed one year‖, the words ―shall not exceed eighteen months‖ shall be substituted.

III. In regulation 58:
(i) In sub-regulation (2), –
(a) for the words ―If the period of the excess leave taken is sought to be served‖, the words ―The period of excess leave taken shall be served‖ shall be substituted;
(b) For the words ―last served his articles,‖ the words ―last served his articles and‖ shall be substituted;
(ii) Sub-regulation (4) shall be omitted.

RAKESH SEHGAL, Acting Secy.
[ADVT.-III/4/Exty./234/2020-21]