Section 23 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 23 lets the Council of the Institute set up Regional Councils to advise and assist it on matters concerning its functions. It is the only section in Chapter VI, and it is short: it says who may create a Regional Council, for what purpose and where the manner and functions are fixed. This article follows the text as per the Act as printed in the ICAI edition of 2022 (amended up to the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022).
The Council may constitute Regional Councils, as and when it deems fit, for one or more of the regional constituencies specified by the Central Government under section 9(2)(a). Their purpose is to advise and assist the Council on matters concerning its functions. How they are constituted and what they do is left to what is "prescribed". The Act does not make a Regional Council a body with its own powers of decision.
Where Regional Councils fit in the Institute
The Council is the managing body of the Institute under section 9(1). Section 9(2)(a) provides for persons elected by members of the Institute from amongst the fellows, chosen "from such regional constituencies as may be specified" by the Central Government. Our article on section 9 and the constitution of the Council explains that election structure. Section 23 uses the same regional constituencies as the map for Regional Councils.
If you are a member, a student or a firm wanting to understand how the Institute is organised in your region, our legal consultation service can help you read the Act and the Institute's regulations together.
Section 23(1): the power to constitute
Section 23(1) reads in three parts.
- Purpose. The Council may constitute such Regional Councils "for the purpose of advising and assisting it on matters concerning its functions".
- Timing. "As and when it deems fit". The Act does not make the constitution of a Regional Council compulsory or fix a date.
- Territory. The Regional Council is for one or more of the regional constituencies that may be specified by the Central Government under clause (a) of section 9(2).
So the territory comes from the Central Government, and the decision to set up a Regional Council comes from the Council. The edition prints a footnote that the notification is in Appendix No. (12). The Appendix is a Government notification printed by ICAI beside the Act and is not part of the Act's text; this article does not state its contents.
The 1959 change. The opening words were substituted by the Chartered Accountants (Amendment) Act, 1959 for the words "The Council may constitute such Regional Councils". The purpose clause, "advising and assisting it on matters concerning its functions", is the effect of that change in the text as it stands.
Section 23(2): manner and functions
Section 23(2) says the Regional Councils shall be constituted in such manner and exercise such functions "as may be prescribed". Under section 2(1)(f), "prescribed" means prescribed by regulations made under the Act. So the Act itself does not say how many members a Regional Council has, how they are chosen or what they do. Those details sit in the regulations.
| Question | Where the answer sits |
|---|---|
| Can a Regional Council be created? | Section 23(1): the Council may constitute |
| For which territory? | Regional constituencies specified by the Central Government under section 9(2)(a) |
| For what purpose? | Advising and assisting the Council on matters concerning its functions |
| How constituted, and what functions? | Prescribed: in regulations made under the Act |
How section 30 treats Regional Councils
Section 30 gives the Council the power to make regulations. Its heads on Regional Councils were changed by the 2022 Amendment Act, in force from 10 May 2022:
- The head on the manner in which elections to the Regional Councils may be held (clause (g)) was omitted.
- The head on the functions of Regional Councils (clause (i)) was omitted.
- A new head, clause (rl), now covers the manner in which a Regional Council may be constituted under section 23(2) and the functions thereof.
In plain terms, the 2022 Act moved the regulation-making power on Regional Councils into one new head tied to section 23(2). Our article on section 30 and the power of the Council to make regulations explains the list. No regulation number or procedure is stated here, because the regulations are not part of the Act.
What section 23 does not say
Reading only what is printed, section 23 does not:
- state the number of Regional Councils or name the regions;
- say whether a Regional Council has elected or nominated members;
- give a Regional Council any power to inquire into or decide a disciplinary matter. Discipline sits with the Disciplinary Directorate, the Board of Discipline, the Disciplinary Committee and the Appellate Authority in Chapter V;
- say that a Regional Council's advice binds the Council.
A member who wants the actual functions in force should read the regulations, not just the Act.
A worked example
Suppose members in a region feel that exam centres and training matters in their area are not being heard. Under section 23(1), the Council may constitute a Regional Council for the relevant constituency to advise and assist it on such matters. The Council decides whether to do so and when. Under section 23(2), how that Regional Council is constituted and what functions it exercises are found in the regulations. Neither the member nor a firm can insist on a Regional Council under the Act; the power rests with the Council.
Commencement note
Section 23 is in force as printed. The head of regulations on Regional Councils changed from 10 May 2022, as noted above. Later amendments and notifications should be checked.
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Key takeaways
- Section 23(1): the Council may constitute Regional Councils, as and when it deems fit, to advise and assist it.
- Territory comes from the regional constituencies specified by the Central Government under section 9(2)(a).
- Section 23(2): manner of constitution and functions are "prescribed", meaning by regulations.
- Section 30 heads on Regional Councils were changed from 10 May 2022.
Read next
- Section 9 of the Chartered Accountants Act, 1949: constitution of the Council
- Section 30: the Council's power to make regulations
- Sections 24 and 24A: penalty for falsely claiming membership
- Cost Accountants Act, 1959: sections 23 to 25
Disclaimer: Based on the Chartered Accountants Act, 1949 as printed in the ICAI edition of 2022 (amended up to Act 12 of 2022), read with S.O. 2184(E) dated 10 May 2022, which brought only part of the 2022 amendments into force, as consulted on 3 October 2026. Regulations, rules, Council guidelines, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.