There are concerns that the National Financial Reporting Authority (NFRA) may be strengthening the monopoly of the Big 4 accounting firms in India. A source within the Institute of Chartered Accountants of India (ICAI) indicated that the Forum of Firms, dominated by the Big 4, has established international norms that NFRA aims to implement in India. However, these new standards do not apply to Public Sector Undertakings (PSUs), Public Sector Banks (PSBs), and insurance companies. Consequently, key regulators like the RBI, CAG, and IRDA opposed the proposal, with only five out of eleven stakeholders supporting it. Nevertheless, NFRA intends to proceed with implementing these international standards. There are calls for the Prime Minister’s Office (PMO) to investigate why the RBI, CAG, and IRDA authorized standards that do not pertain to them and whether this undermines the vision of having ten major Indian accountancy firms.
CA Atul Modani
