ICAI Issues 13th Edition of Code of Ethics Exposure Draft: Seeks Stakeholder Comments by November-End
The Exposure Drafts comprises Volume I, Volume II and Volume III of the Code of Ethics along with an annexed summary of significant changes
ICAI, Exposure Draft
ICAI, Exposure Draft
The Institute of Chartered Accountants of India (ICAI) has released the Exposure Draft: 13th Edition of the ICAI Code of Ethics and has invited comments and suggestions from stakeholders.
The Exposure Drafts comprise three volumes - Volume I, Volume II and Volume III along with an annexed summary of significant changes (Annexure A). Stakeholders have been advised by the Institute to share their feedback on or before 26th November 2025.
Volume I - Internationally Aligned Framework
Volume I represents a comprehensive revision of the Code, in line with the 2024 edition of the International Ethics Standards Board for Accountants (IESBA) Code. It incorporates technology-related amendments and introduces a completely new Chapter 5 on Ethics Standards for Sustainability Assurance, which is to guide professionals engaged in sustainability assurance engagements.
The Volume retains the fundamental principles of integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour, and lays down the conceptual framework and independence requirements applicable to charteredaccountants in practice.
Volume II - India-Specific Ethical Provisions
Volume II focuses on domestic provisions that supplement and modify the international standards to suit India’s regulatory and professional environment. It includes updates arising from the Chartered Accountants, Company Secretaries and Cost & Work Accountants (Amendment) Act, 2022, and expanded interpretations relevant to Indian practice conditions.
The volume also covers sectors such as forensic accounting, research analysis, social impact assessment, and artificial intelligence. This volume ensures that professional ethical obligations are harmonized with Indian laws and Council decisions.
Volume III - Guidelines on Ethical Issues
Volume III consolidates and reorganises various Council guidelines on ethical issues into a dedicated standalone volume. Earlier, these guidelines were part of Volume II, but the new structure provides enhanced clarity and accessibility.
Annexure A - Significant changes in Volumes-I, II and III of Code of Ethics outlines the significant changes proposed in comparison with the existing 12th Edition of the Code of Ethics. Among the key revisions are:
One major change is the removal of the ₹250 crore threshold for the applicability of the Non-Compliance with Laws and Regulations (NOCLAR) provisions, thereby extending their application to all listed entities and material subsidiaries without any monetary limitation.
The draft also proposes a revision in fee dependency thresholds, and introduces new independence restrictions, disallowing auditors from accepting audit assignments of Public Interest Entities (PIE) in cases where they or their networks had previously rendered certain non-assurance services to those clients.
Additionally, the exposure draft contains updated provisions on networking and revised appendices, including refreshed guidelines on the use of the Chartered Accountant (CA) logo, aligned with the Institute's continued efforts to enhance transparency, uniformity and ethical compliance across the profession.
Submission of Comments
Stakeholders may access the Exposure Drafts and Annexure A at the following official ICAI links:
- Volume I: https://resource.cdn.icai.org/89062esb-coe-v1.pdf
- Volume II: https://resource.cdn.icai.org/89063esb-coe-v2.pdf
- Volume III: https://resource.cdn.icai.org/89064esb-coe-v3.pdf
- Annexure A: https://resource.cdn.icai.org/89065esb-coe.pdf
Comments and feedback can be submitted via email to esb@icai.in or ashishswaroop@icai.in, or alternatively through the online form available at https://forms.office.com/r/CunNrHqpck by 26th November 2025.
The ICAI has assured that all suggestions and perspectives received will be duly considered before finalising the 13th Edition of the Code of Ethics.
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