Indian CFA

The Institute

The Institute of Chartered Financial Analysts of India was established in the year 1984 as a non-profit society registered under the A.P. (Telangana Area) Public Societies Act 1350F (Act 1 of 1350F) to offer the certification program for financial analysts known as CFA. The Institute of Chartered Financial Analysts of India (ICFAI) represents India in the ASAF (Asian Security Analysts Federation, Australia). This is in no way affiliated to the CFA Institute of USA. This course is designed for the Indian financial sector. This charter has the backing and recognition of EFAAS(European Federation of Financial Analyst Societies) and allows Indian ICFAI charter holders who have been conferred the CFA designation subject to membership in CCFA are eligible to directly appear for the final CIIA exams from ACIIA.[1]

Trademark Disputes

The ICFAI and CFA Institute are currently involved in a litigation with each other.

In August 2006, the Delhi high court issued a temporary injunction against the Indian organization from using the CFA in India. [2] The judgments made no assessment of the quality of the Indian program and merely discussed the trademark violation. The ICFAI had appealed against this injunction won as it was issuing CFA charter from CCFA through the Institute and confers its Masters Degree in Finance from ICFAI in the capacity of a recognised UGC university.

On May 8, 2007, the U. S. District Court for the Eastern District of Virginia, vacated a Default Judgment issued against ICFAI that the CFA Institute (formerly, AIMR) wrongfully obtained in October, 1998. ICFAI recently moved to reopen the case and to vacate the Default Judgment because the Court lacked jurisdiction over ICFAI at the time the Default Judgment issued. Recognizing the merits of the ICFAI arguments, the Court vacated the October, 1998 Default Judgment.

With the Default Judgment vacated, ICFAI has informed all its CFA charter holders that its earlier communication on not using the CFA charter in U. S. and Canada is treated as withdrawn.

Indian CFAs from ICFAI can now legally and officially use their Charter and practice as Chartered Financial Analysts in the USA and Canada.

ICFAI welcomes the decision of the Court and reiterates its firm commitments to students, parents and industry in offering high quality educational programs.

However, on September 4, 2007, the US District Court for the Eastern District of Virginia reversed its decision to vacate the 1998 injunction against ICFAI after a motion to reconsider that decision was filed by the CFA institute. [3] [4]

Sponsoring Institutes

CCFA (Council of Chartered Financial Analyst)is a registered society with the Indian government seeking to regulate the profession of financial analysts in India but is not a statutory body like ICAI or ICSI or ICWAI.

The Institute of Chartered Financial Analysts of India is a non-profit society under the A.P. (Telangana Area) Public Societies Act 1350F (Act 1 of 1350F), is the sponsor of the ICFAI university offering the MS Finance course which leads to the CFA Charter from CCFA.

The Program

This course is designed keeping in mind the Indian financial system and therefore offers more of a local flavor than the CFA Institute program. ICFAI is a Private Institute and Indian CFA's need not be mandatorily employed by Indian companies. The ICAI (Institute of Chartered Accountants of India), ICWAI (Institute of Cost and Works Accountants of India) and ICSI (Institute of Company Secretaries of India) are all Apex bodies in their respective fields and are statutory bodies under an Act of the Parliament of India.

The Indian CFA Program addresses the broader financial and managerial issues in the areas of Corporate Finance, International Finance, Investment Management and Financial Services.

The CFA Program offered by ICFAI has been developed and is consistently reviewed in the context of the present and future needs of the corporate sector, the investment industry and the financial services sector in India.

CFA Level-1 (DBF)

Group Alpha

Financial Accounting - 200 points
Economics - 200 points

Group Beta

Quantitative Methods - 200 points
Financial Management - 200 points

Group Gamma

Management Accounting - 200 points
Economics Legislation - 200 points

Total - 1200 points

CFA Level -II (ADF)

Group Delta

Security Analysis - 200 points
Portfolio Management & Mutual Funds - 200 points

Award of CFA charter from the Indian Council of CFA's

Group Epsilon

International Finance and Trade - 200 points
Project Management - 200 points

Group Kappa

Financial Risk Management - 200 points
Investment Banking & Financial Services - 200 points

Total 1200 points

CFA Level- III (MS Finance)

Group Lambda

Strategic Financial Management - 200 points
Management of Financial Institutions - 200 points

Group Theta

Mergers & Acquisitions - 200 points
Management Control & Information Systems

Group Sigma

Integrated Case Studies - 200 points

Total 1200 points

Grand Total 3600 points

The Examination for each subject is of 6 hours duration. Each subject has two Papers of 3 hours each. Students who complete all the three levels are entitled to receive the MS Finance Degree from ICFAI university and the CFA Chater from the Institute at the same time.

Recent Developments

Relaxed criteria for Award of CFA Charter through MS Finance

In the recent meeting of the Board of Governors of the Council of Chartered Financial Analysts (CCFA), the eligibility criteria for membership in the CCFA and for award of the CFA Designation and Charter were modified.

“Students who have successfully completed the Groups Alpha, Beta, Gamma, and the subjects Security Analysis, and Portfolio Management and Mutual Funds of the MS (Finance) Program are eligible for Membership in the CCFA and award of the CFA Charter and Designation.”

Subsequently, subjects in MS (Finance) program were realigned

With a view to improve the delivery of knowledge and to integrate different elements of finance domain in a cohesive manner, the subjects in Group Delta, Epsilon, and Kappa of MS (Finance) program were realigned.

Group Delta

Security Analysis
Portfolio Management and Mutual Funds

Group Epsilon

International Finance and Trade
Project Management

Group Kappa

Investment Banking and Financial Services
Financial Risk Management

The revised format will become applicable in the examinations to be conducted from July 2007 onwards.

Thus one can now become CFA by passing groups Alpha, Beta, Gamma and Delta of MS (Finance) Program totalling of 1600 marks or 1200 marks from CFA program from ICFAI University of Tripura.

The CFA Bill 2007

CCFA working with the Ministry of Finance, has submitted a draft bill to the Government of India, "The CFA Bill, 2007" for the establishment of a Statutory Council of CFAs and for the merger of the CCFA Society with the Statutory Council.

The CFA Program with the Master in Financial Analysis Degree

Recently ICFAI through ICFAI University, Tripura, as mandated by Law, is offering the CFA Program leading to MFA Degree. This Charter is offered with a legal status.

Subsequently, The ICFAI University, Tripura sued CFA Institute regarding the right to use the CFA Charter, in the Guwahati High Court.The American CFA Instiute is subsequently been barred from operating in India with no legal status to the American CFA Charter holders by Supreme Court Judgement.

The CFA program of ICFAI is now being offered by two independent bodies created separately i.e. CCFA and IUT Tripura and CFA's from both the bodies are mandatorily obliged to become members of CCFA -The Indian Council of CFA's.

Supreme Court allows CAs to pursue CFA from ICFAI & become CFA's

After nearly two decades, the ICFAI (Institute of Chartered Financial Analysts of India) has won the ‘chartered’ row against the ICAI (Institute of Chartered Accountants of India).

In a decision dated May 16, 2007, the apex court ruled in favour of the Hyderabad-based ICFAI, by setting aside an earlier verdict of the Andhra Pradesh High Court, which had allowed the ICAI to prohibit its members from using the description ‘Chartered Financial Analyst’ or its abbreviation, CFA can now become full members in CCFA and practice as Chartered Financial Analysts.

AICTE takes action against CFA Institute, USA

All India Council for Technical Education (AICTE) has issued a letter to CFA Institute concluding that it has not obtained approval to conduct its CFA Program in India and must cease all operations in India. The American Institute is barred from having any enrollments are conducting examinations in India and has no recognition of technical knowledge the CFA Institute seeks to impart.