Future of CA profession hinges on ethics, judgment, not just technical skills: Sebi chief

He said the strength of the financial system ultimately depends not on the extent or detail of regulation, but on how deeply integrity is embedded in professional conduct, noting that regulation can prescribe minimum standards but cannot substitute independent judgment or ethical courage.

Sebi chairman Tuhin Kanta Pandey on Saturday said the future relevance of the chartered accountancy profession will depend on ethical leadership and sound judgment, and not on technical expertise alone. Speaking at the Institute of Chartered Accountants of India (ICAI) World Forum of Accountants 2.0, Pandey said professionals would increasingly be required to ''speak truth to power,'' operate confidently amid ambiguity and consistently place public interest above convenience as markets become more complex. He said the strength of the financial system ultimately depends not on the extent or detail of regulation, but on how deeply integrity is embedded in professional conduct, noting that regulation can prescribe minimum standards but cannot substitute independent judgment or ethical courage. Pandey said that the role of chartered accountants has evolved well beyond ensuring technical correctness, procedural compliance and adherence to standards, and now increasingly involves exercising judgment under uncertainty. He said today's professionals are required to question assumptions, navigate grey areas where standards provide principles rather than prescriptions, and influence boardroom discussions by challenging management narratives while balancing client expectations with the larger public interest. As a result, the profession has moved from being a purely technical function to an institutional one, he added. Pandey noted that while technology such as artificial intelligence, automation and advanced analytics will significantly enhance audit quality and efficiency, it cannot replace human judgment, ethical scepticism or the responsibility to raise uncomfortable questions. ''Technology will enhance the audit, but only character can protect its credibility,'' he said, stressing the need for continuous learning, upskilling and intellectual independence within the profession. Pandey said there is scope for more structured engagement with the CA professional to strengthen corporate governance, enhance forensic capabilities and build resilience in capital markets. He said closer collaboration between regulators and professionals could help improve accountability frameworks, enhance forensic capabilities and early-warning systems, and build capacity in areas such as digital assurance, valuation practices and systemic resilience. Emphasising that regulation alone cannot create an ethical culture, Pandey said regulators can set frameworks and enforce minimum standards, but independent judgment and courage in boardrooms must come from professionals themselves. Financial governance, he said, is shaped as much by culture as by compliance. Pandey added that as the country's capital markets become more integrated with global financial systems, international collaboration will remain critical for maintaining alignment with global standards, regulatory principles and the exchange of best practices. Meanwhile, the managing director and chief executive officer of the National Stock Exchange of India (NSE) also addressed the event, which was held under the theme ''Bullish on Bharat: Powering Capital Market Revolution.'' The World Forum of Accountants (WOFA) 2.0 brings together influential accounting and finance professionals from across the world, recognising their contribution to economies, societies and the broader public good.

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