ICAI Clears CA Firms for PM Internships, Permits Advertising Under Revised Ethics Code

The Institute of Chartered Accountants of India (ICAI) is set to facilitate the participation of CA firms in the Pradhan Mantri Internship Scheme (PMIS) after resolving key funding-related challenges that had delayed implementation. Simultaneously, the Institute has enforced the Revised 13th Edition of the Code of Ethics, bringing major regulatory changes, including the much-awaited permission for CA firms to advertise professional services.

As per ICAI President Prasanna Kumar D, discussions with the Government have led to a workable mechanism for meeting the firm's contribution requirement under PMIS. Interns enrolled under the scheme will receive a monthly stipend of at least ₹9,000, with ₹8,100 funded by the Government and the remaining amount contributed by participating CA firms through non-CSR resources. Earlier, the scheme faced implementation difficulties because the prescribed contribution model relied on Corporate Social Responsibility (CSR) funds, which are generally unavailable to professional firms. The issue has now been successfully resolved.

Introduced in the Union Budget 2024-25, the PM Internship Scheme aims to provide practical training opportunities to one crore youth over five years through India's top 500 companies. The initiative focuses on delivering real-world industry exposure, ensuring that interns spend a significant portion of their training period in actual business environments to develop employable skills and professional expertise.

In parallel, ICAI is working closely with the Government on the proposed PM Mitra Initiative and has already submitted its recommendations. The Institute is also preparing a structured nine-month training programme that blends classroom learning with hands-on practical experience.

With an extensive network of 5 Regional Councils and 186 branches across the country, particularly in Tier-II and Tier-III cities, ICAI plans to strengthen support for Micro, Small and Medium Enterprises (MSMEs). This infrastructure will enable businesses in smaller regions to access affordable compliance, advisory, and professional services that are often difficult to obtain due to geographical and financial constraints.

The proposed Corporate Mitras Programme is expected to create a pool of industry-ready professionals equipped with practical knowledge while helping MSMEs receive cost-effective support in areas such as governance, compliance, and business advisory services.

Revised Code of Ethics Effective from April 1

ICAI has formally implemented the Revised Code of Ethics with effect from April 1, marking one of the most notable reforms in the profession. A key highlight of the updated framework is the authorization granted to CA firms and members to advertise their services, subject to compliance with ICAI's prescribed guidelines.

Under the revised provisions, firms can publish information regarding their qualifications, expertise, and service offerings, provided such communication maintains the dignity and credibility of the profession. However, ICAI has clarified that it will neither review nor endorse the content of such advertisements and will not be responsible for any claims made by individual members or firms.

The updated Code further strengthens independence requirements for Non-Assurance Services provided to audit clients and introduces dedicated Sustainability Assurance Standards, including independence provisions through Volume III of the Code of Ethics.

Additionally, the revised website guidelines now permit members and firms to use push technology for non-exclusive services and pull technology for exclusive services. The scope of Management Consultancy and Other Services has also been widened to cover emerging areas such as forensic accounting, research analytics, social impact assessment, artificial intelligence (AI), and other technology-driven advisory services.

These reforms are expected to enhance the growth prospects and global competitiveness of Indian CA firms, while supporting the Government's broader objective of creating larger and internationally competitive domestic professional services organizations.