Random Thoughts

The CFA imbroglio

At a point when experts are talking of making Mumbai as a major financial hub in Aisa, the decision of All India Council for Technical Education (AICTE) to ban the CFA exams in India is a retrograde step. The programme is highly respected among the investment analysts the world over. It serves as a common benchmark of knowledge about investment strategies.

AICTE’s decision is saddening and disgusting at the same time. The reason cited by the regulatory body is that the CFA institute had not registered its programme with the former before conducting exams in the country. Another local institute, Institute of Chartered Financial Analysts (ICFAI) had earlier filed a case against the CFA Institute for conducting educational programme in India without first notifying such an action to AICTE. In its defence, the CFA Institute had argued that it’s not offering any technical education, which is mainly the purview of AICTE.

However, the AICTE acts mentions management as one of the educational areas that are under its regulation. This, in fact, makes all the management institutes in the country to get an approval from AICTE.

What’s next? For the CFA Institute, India is becoming a major centre for CFA aspirants. Thus, it cannot ignore this potential market. It has two things to look after. First, it has to see through the successful conduction of it June 3 exam. For that, it is trying to bring a stay order on AICTE’s ban. With such a short time at hand, one wonders if this is possible. The other thing is about its presence in India. The easiest way out is to get an approval from AICTE. However, in this case, one fear lurks. Registration with AICTE may reduce the independence of the CFA Institute to set the curriculum or it may have to follow certain procedures and norms, which it may not be comfortable in doing so.

Labels: Policies

posted by Ranjit @ 5/25/2007 01:30:00 am