Mumbai: The Delhi high court has permitted the CFA Institute, the organization that offers the chartered financial analyst qualification globally, to conduct the CFA examination in India.
The exam is scheduled to be held globally on 3 June.
The decision follows an appeal made by the Virginia- headquartered institute last week to the court after the All India Council for Technical Education (AICTE), the apex body governing education in India, ordered the institute to cease operations in India citing that the institute did not have the requisite approvals to conduct its programmes in India. The institute had filed a petition in the Delhi high court seeking a stay on the notice one week back.
The order, dated 18 May, is stayed till the writ petition is disposed of and the CFA can go ahead with the examination which is scheduled to be held on 3 June, justice B.D. Ahmed said, while pronouncing the verdict on CFA’s petition.
The court, however, made it clear that the order is limited only to the extent of conducting examination and all other activities would not be carried out by the institute in accordance with the order passed by AICTE on 18 May.
“We are happy that the Delhi high court has allowed us to conduct the CFA exam in India. At this point, many students are waiting for some clarity on this and the judgement should be a big relief to them,” said S.V. Balachander, India consultant of the CFA Institute.
India has one of the largest number of CFA aspirants. This year, 10,500 people have enrolled for the programme from the country, out of which about 7,000 had registered for the exam.
Many of these students were considering taking the exam at an alternative location outside India. The CFA programme costs about $3,000 (Rs1.23 lakh) for the three levels.
On 30 May, the Agartala Bench of the Guwahati high court, passed an interim order upholding the notice sent by AICTE. The order restrained the CFA Institute from indulging in any such activities that may go or is treated to be contrary to provisions of the law. “All admissions, registrations and other activities including examination being conducted shall have no value and force in the eyes of law,” the order stated.
The Guwahati high court’s ruling and AICTE’s notification were prompted after a case filed by a rival institution—the Institute of Chartered Financial Analysts of India (Icfai). Icfai, which offers its own CFA course, contested the CFA Institute’s right to conduct its programmes in India.
“We welcome the interim relief given to the students enabling them to take the exam. The Guwahati high court’s judgement on admissions, registrations and other issues, still remains and these can be resolved later,” said S.R. Malela, member, board of governors, Icfai. While Thursday’s judgement offers relief to the students, the institute’s right to operate in India may still need to resolved in the courts.