Government Weighs Profession-Wise Regulation For Multidisciplinary Partnerships

The government is considering allowing statutory professional bodies to regulate their respective members in proposed multidisciplinary partnerships (MDPs), instead of creating a common regulator for such firms, according to people familiar with the matter.

Under the proposed framework, regulators overseeing chartered accountants, company secretaries, cost accountants, and other professionals would continue to handle disciplinary matters involving their members working within MDPs. The Ministry of Corporate Affairs (MCA) is working on a framework that would allow advocates, engineers, architects, actuaries, chartered accountants, company secretaries, and cost accountants to operate under a single firm structure. The proposal is part of the government’s plan to facilitate the creation of larger Indian professional services firms capable of competing in the global audit and consultancy market.

Current regulations restrict the formation of MDPs. The ministry had invited stakeholder comments on the proposal last year and has since been holding consultations on the regulatory framework needed for such partnerships.