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Centre can nominate RBI official to ICAI
September, 15th 2006
The legal decks have been cleared for the Central Government to nominate a person "holding position" under the Reserve Bank of India to the Central Council of the Institute of Chartered Accountants of India (ICAI). So far, no RBI official could be nominated to the ICAI council. The Centre has, through new rules, specifically said that persons holding a position under RBI can be nominated to the Central Council of ICAI. The Centre has also been empowered to nominate persons holding position in any other organisation under Government control to the Central Council. This may imply that the Centre could rope in persons from the SEBI or the IRDA into the Central Council of the institute. The next round of Government nomination to the ICAI council is expected to take place in January next year, after the elections to the council are held in December 2006. Expansion of council The Central Government has also approved an expansion in the strength of the ICAI council from 30 members to 40. In the expanded council, the Government can have eight nominees. The remaining 32 would have to be elected from among the members of the ICAI. It has also now been stipulated that a Government-nominated person should not be a member of the institute. Persons of eminence The Government can also choose its nominees from among persons of eminence in the fields of law, banking, economics, business, finance, industry, management and public affairs. Hitherto, the ICAI central council's strength stood at 30 members - 24 elected members and six government nominees. Out of the six Government nominees, there was a nominee each from the Ministry of Company Affairs, the Comptroller and Auditor-General and the Central Board Of Direct Taxes (CBDT). Meanwhile, the Central Council, which met on Wednesday, decided to adopt the same proportion of increase (as that of the strength of the central council) to the five regional councils also, the ICAI President, Mr T.N. Manoharan, said.
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