The ministry will soon launch a mandatory know-your-customer (KYC) exercise for over three lakh of these professionals functioning in the country.
After bringing in disclosure norms for companies and directors, the Ministry of Corporate Affairs (MCA) has now directed its watchful gaze on chartered accountants, cost accountants and company secretaries.
The ministry will soon launch a mandatory know-your-customer (KYC) exercise for over three lakh of these professionals functioning in the country.
"The ministry is working on a set of rules for the KYC process. The exercise will be launched over the next 3-4 months," people close to the development told DNA.
he ministry has been receiving complaints about unqualified persons fraudulently carrying out the functions of chartered and cost accountants and of company secretaries.
"There have been complaints about people signing documents on behalf of members by faking signatures and seals. There have been cases of bogus chartered accountants conducting audits or signing on the books of a company using membership numbers of others," an official said.
"The KYC form will be similar to the one for directors. The professionals will be asked to provide details such as phone numbers, e-mail as well as postal addresses, and their membership numbers," he said.
The official added that the MCA is also mulling over the creation of a registry of digital signatures of the professionals.
The ministry is thinking various options to ban the people from fraudulently carrying out audits and other professional functions.
"After the KYC exercise is over, we will advise the industry to employ only those professionals who have complied with the disclosure norms. We will also ask professional bodies like the Institute of Chartered Accountants of India (ICAI), Institute of Company Secretaries of India (ICSI) and Institute of Cost & Works Accountants of India (ICWAI) to investigate and take action in the cases of non-compliance," said another official.
There are an estimated 2.5 lakh registered chartered accountants, 40-50 lakh company secretaries and 25-30 lakh cost and works accountants in the country.
The proposed disclosure norms will impose restrictions on the professionals who fail to comply with them.
Dinned Into The System
- Last Oct, MCA disabled director ID numbers (DINs) of 18 lakh KYC non-compliant directors of a total 32 lakh
- DIN: Unique no. needed to file a co’s compliance papers
- Directors had to file their personal details like cell no., e-mail, PAN and Aadhaar
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