In a major flexibility for CA aspirants, the CA Institute, regulator of the chartered accountancy profession, has given articled clerks a choice to opt out of the existing arrangement with a principal during the first year of articleship. “Articled clerks can now transfer to another practicing chartered accountant in the first year. Earlier, there was a blanket ban and no transfer was permissible for all three years.

“Now, we are giving students an option to transfer in the first year. But for the second and third year, the restrictive clauses will continue to apply,” Mr Amarjit Chopra, ICAI President, told BusinessLine, here.

An articled clerk is a trainee attached to a practicing chartered accountant.

There is a deed of articles for the duration of three years.

Hitherto, CA students were unable to transfer to other firms even if the existing one did not suit his or her requirement.

“Many occasions, students felt they had entered a wrong firm or there was no compatibility with the principal. But now the flexibility to transfer is being provided.

“This will benefit both the student and the principal,” Mr Chopra said.


Transfer/Termination of Articleship

[Regulation 56(1)]

In partial modification of the announcement dated 30th June 2009 regarding transfer / termination of articles the Council in its recent meeting has decided that the transfer/termination of articleship in terms of Regulation 56(1) of the Chartered Accountants Regulations, 1988 shall be permissible on the grounds as stated below: –

I. Transfer /termination of articles is permitted without any restriction during the first year of articles.

II. During rest of the articleship period on satisfying any one or more of the conditions as stated below: –

1. Medical grounds requiring discontinuance of articles for a minimum period of three months (on production of a Medical Certificate issued by a Government Hospital).

2. Transfer of parent(s) to another city.

3. Misconduct involving moral turpitude.

4. Other justifiable circumstances / reasons: –

(ii) Grounds already permissible in the Chartered Accountants Regulations, 1988 (on submission of requisite proof of the act warranting transfer/termination of articleship): –

a. Industrial Training (Regulation 51)

b. Secondment of articles (Regulation 54)

c. Conversion from PCC to IPCC (for termination of articles only. Re-registration of articles to be allowed only after passing Group-I of IPCC)

d. Death of Principal [Regulation 57(1)(c)]

e. Ceasing of practice by the Principal [Regulation 57(1)(a)]

f. Removal of name of the Principal from the Register of Member due to any reason [Regulation 57(1)(b)]

(iii) Marriage basis (only if there is relocation to another city involving distance of 50  Kms).

(iv) Irregular payment or non payment of stipend with reference to Regulation 67.

(v) Articled assistant desires to serve balance period of training outside India.

(vi) Shifting by the Principal to another city involving distance more than 50 kms.

The articled assistants are required to get the consent of the Institute before getting Form 109 signed by the Principal in their own interest.

The request, on any one or more of the aforesaid grounds, of an articled assistant on a plain paper alongwith the recommendation/ consent of the Principal for transfer / termination of articleship accompanied by evidence/proof (self-attested by the articled assistant) to the satisfaction of the Institute be made. Request for transfer not accompanied by consent of Principal shall not be accepted.

In case of dispute between principal and articled assistant, the matter be settled amicably among the articled assistant and the principal concerned and the Institute shall not interfere in such cases.

2nd July 2010 Secretary

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118 responses to “ICAI issued notification on Transfer/Termination of Articleship, allowed Transfer during the first year of articles”

  1. G. NARAYANA says:

    Dear Sir/Madam,
    I am a student of ICAI IPCC direct scheme. I have completed My Orientation Program and IT training and after that I am doing articleship training for last 10 months. But now I have a serious problem in my home and for that I have to terminate my articleship training and have to join a job. But I want to rejoin articleship after a year and wish to complete my study. Is it possible that when I shall rejoin after a year the previous ten months articleship will be counted??

  2. Hussain says:

    Hi Sir,

    I am second year of my Articleship and I completed 14 months of my training ,I Want to take transfer in same city, my Current firm and New joining firm is within 10 Km distance. Is there any Problem with that. Please reply sir

  3. Yogeshwaran Radhakrishnan says:

    my principal is compelling me to get termination because i did’nt accept the work he has given. But i dont want to get termination now because already i have completed more than 1 year so that i cant join in any other firm. Is it possible that a principal can compell the student to get termination??

  4. Asha Reddy says:

    Sir, please tell me what is the solution if I registered with other firm without getting permission from ICAI.after exceeding 1year

  5. Akash Tiwari says:

    Dear Sir,
    I am 2nd year articled assistant in a firm and i want transfer because there is no work in this firm related to tax and other audits except internal audits.Here is nothing to learn more in practice. On this ground can i get transfer.

  6. jayarao says:

    Dear Sir,
    I am in second year of my articleship and completed 16 months of my training but my principal does not give me work because of which i am not satisfied with my work. If i asked him for another work he directly say no. Is there any procedure for transfer? He made me sit idle in the office till evening. My office timing is 10:00 to 6:00 but he do not permit any article to leave office at time. He also dont send me on audit since one year has passed. Please someone help me.

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