Details of the proposed changes by ICAI in CA course

Major Changes have been proposed in the Chartered Accountants (2nd Amendment) Regulations, 2022

Le's break them down below.

1. A person who wish to take COP must take 1 year post qualification Experience under Practicing FCA to apply for COP. This experience should be in the last 5 years

Below is the extract

"(1) A member may apply to the Council for a certificate entitling him to practise as a chartered accountant.

Provided that a person who has been admitted as a member at any point of time shall be eligible for certificate of practice on completion of one year of post qualification work experience with a fellow Chartered Accountant in Practice.

Provided further that the requirement of one year post qualification work experience shall not be applicable for a member who has worked for a minimum period of one year with a fellow Chartered Accountant in Practice in the immediately preceding five years before the date of making such application."

2. Registration for Foundation can now be done after passing 10th also But needs to register on or before 31-Dec to give exams in May Attempt

Below is the extract

"25G. Registration for the Foundation Course

(1) No candidate shall be registered for the Foundation Course unless he has passed the Class 10th Examination conducted by an examining body constituted by law in India or outside India an examination recognised by the Central Government or the State Government as equivalent thereto.

(2) Notwithstanding anything contained in sub-regulation (1), a candidate who was already registered for Common Proficiency Course or Foundation Course under these regulations shall be eligible for conversion to Foundation Course under this regulation subject to such conditions as may be specified by the Council.

(3) The registration for Foundation Course shall be valid only for a period of four years from the date of registration / conversion.

(4) A candidate shall pay such fee, as may be fixed by the Council from time to time, which shall not exceed twenty-five thousand rupees, along with an application in the form approved by the Council for registration to the Foundation Course.

Provided a candidate who is residing outside India shall pay such fees as may be fixed by the Council from time to time.

3. A candidate who has passed Intermediate Exams of CWA, CS are given exemption from Foundation Examination

Below is the extract

(5) A candidate who has passed the Intermediate examination conducted by the Institute of Cost Accountants of India set up under the Cost and Works Accountants Act, 1959 (23 of 1959) or by the Institute of Company Secretaries of India set up under the Company Secretaries Act, 1980 (56 of 1980) shall also be eligible for registration to Intermediate Course:

4. ATC (Accounting Technician Course) has now been changed to BAA(Business Accounting Associate) Certificate

Below is the extract

(3) A candidate, shall be eligible for Business Accounting Associate Certificate if he -

(a) passes both Group I and Group II of Intermediate Examination; and
(b) successfully completes Integrated Course on Information Technology and Soft Skills under regulation 51D; and
(c) completes the practical training as provided in these regulations; and
(d) successfully completes the self paced online modules as provided in these regulations; and
(e) pay such fees as may be decided by the Council from time to time which shall not exceed Rs five thousand.

Provided a candidate who is residing outside India shall pay such fees as may be fixed by the Council from time to time.

5.  Negative Marking in MCQ based Questions to include the essence of Competitive Papers (in Both Intermediate & Final)

Below is the extract

(10) The Council may adopt the criteria of negative marking in a paper or papers having objective type questions in such manner as may be specified by it from time to time.";

6. Minimum Articleship Stipend increased (Double from current rate)

Below is the extract

7. Articleship Period reduced from 3 years to 2 years

Students currently undergoing Articleship, their articleship will also be reduced to 2 years once these regulations are finally notified.

Below is the Extract

In regulation 50,-

(i) In clause (ii), for the words "three years, the words" two years shall be substituted;
(ii) For the proviso to clause (ii), the following proviso shall be substituted, namely, –

8. Industrial Training Stipend to be minimum of Rs. 15,000

Below is the extract

32. In regulation 51,-

(i) In sub-regulation (1), after the words "Intermediate examination" the words "under these regulations" shall be inserted and for the words "eighteen months", the words "twelve months" shall be substituted;

(ii) In sub-regulation (4) and (9), for the words "eighteen months", the words "twelve months"  shall be substituted;

(iii) In sub-regulation (11), after the words, "industrial training", the words " subject to a minimum of rupees fifteen thousand per month" shall be inserted;

(iv) After sub-regulation (11), the following sub-regulation (12), shall be inserted, namely,-

9. Minimum 50% marks required in Online Self Paced Modules mandatory for registering in Final Course

Below is the extract

"51F. Self-paced online modules

"(1) A candidate who has passed both the Groups of the Intermediate Examination shall be required to undergo and pass self paced online modules consisting of such number of modules and in such manner as may be specified by the Council from time to time.

(2) A candidate shall be declared to have passed in the self paced modules if he obtains a minimum of fifty per cent marks in each module."

10. A member who is residing abroad, may complete his 1-year practical experience training required for COP under other recognized Accounting Bodies Member

Below is the extract

37. After regulation 54A, the following regulation 54AA shall be inserted, namely,-

"54AA. Practical Training of a candidate who is residing outside India under eligible members of Accountancy Institutions or Bodies outside India

A candidate who is residing outside India may undergo the practical training under eligible members of such other accounting institutions or bodies outside India recognized by the International Federation of Accountants in such manner as may be determined by the Council.";

11. 12 leaves in a year allowed except Public Holidays and Sundays during Articleship

Below is the extract

39. In regulation 59,-

(i) For sub-regulation (1), the following shall be substituted, namely,-

"(1) An articled assistant shall be eligible for a leave of twelve days in each year of his practical training.

(ii) Sub-regulations (2), 4) and (5) shall be omitted;
(iii) In sub-regulation (7),"

12. This last point is creating confusion on whether the current Articleship period will be reduced to 2 years or not

According to my initial analysis, it seems that only the Stipend would be increased, that is why 3 years are mentioned in the new revised table of Stipend. The Articleship Period would remain same at 3 years & they would be excluded from the 1 year post qualification experience to apply for COP as proposed in the new scheme. This point needs more clarity.

Below is the extract

"(8) An articled assistant who is already registered on or before the coming into force of the Chartered Accountants (2nd Amendments) Regulations, 2022 shall continue to be governed by the provisions of this regulation which were in force prior to their amendment and as per the deed of articles executed under these regulations."

These are a series of Positive changes that has been bought in by Council and we hope a positive results in the years to come and our CA Profession continues its glorification. These regulations are just draft regulations, nothing is final and are subject to Positive changes. Anyone willing to suggest changes or comments may write them at the link which will be updated as and when received.

Also Read: Draft to amend the Chartered Accountant Regulations, 1988 proposed by ICAI