ICAI to recommend ways to finance homegrown MDPs

AS THE GOVERNMENT is moving fast to enable formation of multidisciplinary partnership (MDP) firms of professionals in India with necessary regulatory frameworks, the Institute of Chartered Accountants of India (ICAI) is planning to make recommendations on ways to arrange finances for proliferation and growth of such entities in India.

- MANU KAUSHIK

The ICAI, which is a body supported by a law made by Parliament, will prepare a report focusing on bringing finances to such firms.

ICAI President Charanjot Singh Nanda said on Sunday that discussions are on at the government level on boosting the financial avenues for MDPs,so that they can growin size, with some even big enough to compete with the global Big Four.

The global consulting and auditing industry is currently valued at around $240 billion.

The government has stated that it wants to encourage indigenous professional service firms. The free trade agreements (FTAs) with the UK, EFTA and the ones on the anvil with the European Union are expected to facilitate rapid growth of Indian MDPs.