The Institute of Chartered Accountants of India (ICAI) is in the process of formulating guidelines for overseas networks, with a particular focus on consulting services, reported The Times of India.  

This initiative is aimed at providing a structured framework for Indian firms to join networks and enhance their global presence.  

The ICAI Council will deliberate on the detailed norms towards the end of May 2025, the report added.  

The Council, comprising 40 members, with 32 elected by chartered accountants and the remaining eight nominated by the Central Government, will discuss these guidelines.  

The institute, responsible for regulating auditors, has previously issued revised guidelines for mergers, demergers, and the aggregation of audit firms structured as limited liability partnerships.  

These measures are intended to facilitate partnerships among firms. 

However, the proposed norms may lead to disputes with global audit and consulting firms, the Big Four, who have expressed opposition to such regulations.  

The Big Four which operate through Indian firms are said to be concerned that the new guidelines might impose registration requirements on their overseas partners and introduce other regulations, including bans on advertising and sponsorships. 

Both the government and the ICAI are said to be eager to establish norms and a regulatory framework that allows domestic firms to compete with international counterparts as well as build a global footprint. 

Moreover, the intention is to enable smaller firms, some with only one or two partners, to expand their services beyond their current city of operation.  

This expansion could be facilitated by allowing these firms to align or partner with other similar-sized or larger firms, thus also benefiting local businesses through access to a broader range of services. 

In April 2025, the ICAI signed a memorandum of understanding with the Office of the Comptroller & Auditor General of India.  

This partnership is designed to enhance the capacity development framework within the CAG through structured training and continuing education, contributing to the advancement of public sector audits.