ICAI Opens Doors: CA Firms Allowed to Advertise, Internships Under PMIS Begin
Government-backed stipend of ₹9,000 for interns
Revised Code of Ethics modernizes professional practice
By Legal Reporter
New Delhi: June 04, 2026:
The Institute of Chartered Accountants of India (ICAI) has introduced two major reforms: Chartered Accountant (CA) firms can now advertise under the revised Code of Ethics, and they will soon onboard interns under the Pradhan Mantri Internship Scheme (PMIS) with government-supported stipends. These changes reshape the professional landscape for CA firms, balancing ethical regulation with opportunities for growth and youth employment.
The ICAI’s latest reforms mark a turning point in the regulation of Chartered Accountancy practice in India. By permitting advertising and aligning CA firms with the PMIS, ICAI is responding to evolving business realities and the Prime Minister’s vision of creating globally competitive “desi firms.” This article analyzes the legal and regulatory framework underpinning these changes, their implications for CA firms, and the broader impact on professional ethics and youth employment.
Key Legal and Regulatory Frameworks
1. Pradhan Mantri Internship Scheme (PMIS)
- Announced in Budget 2024–25, PMIS aims to provide 1 crore internships over five years across top 500 companies.
- Stipend structure: Minimum ₹9,000 per month, with ₹8,100 funded by the government and ₹900 (or more) contributed by firms.
- Legal basis: Implemented through government guidelines, requiring firms to provide real-world work exposure for at least half of the internship period.
- Resolution of CSR issue: Initially, PMIS required company contributions via CSR funds. Since CA firms lack CSR budgets, ICAI negotiated an alternative mechanism allowing non-CSR contributions. thehindubusinessline.com
2. ICAI’s Revised Code of Ethics (13th Edition)
- Effective April 1, 2026, the revised code introduces significant changes:
- Advertising permitted: CA firms may publish write-ups about their services, subject to ICAI guidelines ensuring dignity and public interest.
- Website guidelines: Firms may use “push technology” for non-exclusive services and “pull mode” for exclusive services.
- Expanded services: Inclusion of management consultancy, forensic accounting, AI-driven analysis, and sustainability assurance.
- Independence provisions: Strengthened rules for non-assurance services to audit clients.
3. Societies Registration Act, 1860 & Advocates Act, 1961 (Comparative Context)
- Unlike statutory bodies such as Bar Councils, CA firms are private entities regulated by ICAI.
- ICAI’s authority stems from the Chartered Accountants Act, 1949, which empowers it to set ethical standards and disciplinary rules.
Analytical Discussion
Advertising: A Paradigm Shift
Traditionally, CA firms were prohibited from advertising to maintain professional dignity. The revised code acknowledges the competitive realities of modern practice. Allowing advertising, with safeguards, aligns Indian CA firms with global standards where professional marketing is common.
Internships: Bridging Academia and Practice
PMIS provides structured exposure to real-world accounting and compliance work. For CA firms, this is an opportunity to expand capacity while contributing to national skill development. For interns, the government-backed stipend ensures financial viability.
Ethical Safeguards
While advertising is now permitted, ICAI insists on maintaining dignity and public interest. This balance reflects the tension between modernization and preserving professional integrity.
Impact on MSMEs
ICAI’s nationwide network, especially in Tier-II and Tier-III cities, positions CA firms to support MSMEs with compliance and advisory services. The reforms enhance accessibility and affordability of professional expertise.
FAQs for Quick Understanding
Q1. What is the PMIS stipend structure?
Interns receive at least ₹9,000 per month, with ₹8,100 funded by the government and ₹900 (or more) by CA firms.
Q2. Can CA firms now advertise freely?
Yes, but advertisements must comply with ICAI guidelines, ensuring dignity and public interest.
Q3. What legal authority allows ICAI to regulate CA firms?
ICAI derives its authority from the Chartered Accountants Act, 1949.
Q4. How was the CSR issue resolved for CA firms under PMIS?
Since CA firms lack CSR budgets, ICAI negotiated with the government to allow contributions from non-CSR funds.
Q5. What new services can CA firms offer under the revised code?
Forensic accounting, AI-driven analysis, sustainability assurance, and other consultancy services.
Q6. How does this affect MSMEs?
MSMEs gain access to affordable compliance and advisory support through ICAI’s extensive network.
Q7. When did the revised Code of Ethics come into effect?
April 1, 2026.
Conclusion
ICAI’s twin reforms—permitting advertising and integrating CA firms into PMIS—signal a modernization of India’s accounting profession. They balance professional ethics with market realities, expand opportunities for youth, and strengthen the role of CA firms in supporting MSMEs and national economic growth. The changes reflect a broader trend of aligning professional regulation with global standards while safeguarding integrity.