SPOM Guides · Choosing Electives
Which Set C Elective Should You Choose?
Ten papers, one choice, twenty learning hours either way. Here is what each paper actually contains and which considerations should decide it.
Verify the current list of papers on the ICAI portal
What you are choosing
Set C offers ten elective papers. You choose one, at the time of CA Final registration. Whichever you pick:
- Requires 20 learning hours on the LMS.
- Carries 100 marks over 2 hours, MCQ format, no negative marking.
- Requires 50 percent to pass.
- Expects working knowledge, not the expert knowledge expected in Set A and Set B.
- Contributes nothing to your CA Final marks.
Every paper carries the same hours, the same format and the same pass mark, and none of it counts towards your Final aggregate. Choose sensibly, but do not spend a fortnight agonising over it.
All ten papers compared
| Paper | Subject | Character | Overlaps with |
|---|---|---|---|
| 1 | Risk Management | Definitions and frameworks; minimal calculation | Audit, Financial Management |
| 2 | Sustainable Development and Sustainability Reporting | Frameworks and acronyms; no calculation | Audit, Corporate Law |
| 3 | Public Finance and Government Accounting | Conceptual, policy oriented | Economics, limited overlap |
| 4 | Insolvency and Bankruptcy Code, 2016 | Timelines, sections and one ordered list | Corporate and Economic Laws |
| 5 | International Taxation | Thresholds and treaty concepts | Direct Tax Laws, International Taxation |
| 6 | Arbitration and Conciliation Act, 1996 | Procedural, section-driven | Corporate and Economic Laws |
| 7 | Forensic Accounting | Techniques and red flags; investigative | Audit |
| 8 | Valuation | Numerical; approaches and multiples | Financial Management, AFM |
| 9 | Financial Services and Capital Markets | Instruments, institutions, some formulas | AFM, Financial Management |
| 10 | Forex and Treasury Management | Numerical; parity conditions and hedging | AFM, Financial Management |
A closer look at each paper
Paper 1 — Risk Management
Among the most chosen electives. Content is largely conceptual: risk versus uncertainty, inherent versus residual risk, risk appetite versus tolerance, the four risk responses, the COSO ERM framework and ISO 31000. There is some quantitative content around Value at Risk but nothing heavy.
Suits you if you prefer definitions to calculations and want a paper you can prepare quickly.
Paper 2 — Sustainable Development and Sustainability Reporting
Frameworks, acronyms and numbered lists. The seventeen SDGs, the nine NGRBC principles behind BRSR, GRI, IFRS S1 and S2, TCFD, and the three emission scopes. Almost no calculation.
Suits you if you are comfortable memorising framework names and are interested in an area growing quickly in professional practice. Note that this is the fastest-changing content in the syllabus, so use current study material.
Paper 3 — Public Finance and Government Accounting
Fiscal policy, budgeting in government, public debt, and government accounting systems. Conceptual rather than numerical.
Suits you if you enjoyed economics, or work in a public sector or government audit context.
Paper 4 — Insolvency and Bankruptcy Code, 2016
Highly structured: the CIRP timeline of 180 plus 90 within an outer limit of 330 days, the moratorium, the Committee of Creditors and its 66 percent threshold, Section 29A ineligibility, and the Section 53 liquidation waterfall. Learn the timelines and the waterfall and much of the paper is covered.
Suits you if you like law with clear numerical anchors, or you work in an insolvency or restructuring practice.
Paper 5 — International Taxation
Residential status, DTAA and relief methods, Permanent Establishment, transfer pricing methods, POEM, GAAR and BEPS. Threshold-heavy but conceptually coherent.
Suits you if you are strong in direct tax, or intend to work in international tax. Overlaps usefully with the CA Final tax papers.
Paper 6 — Arbitration and Conciliation Act, 1996
Procedural law: arbitration agreements, appointment of arbitrators, the award, and grounds for setting it aside. Section-driven.
Suits you if you are comfortable with procedural statutes and have an interest in dispute resolution.
Paper 7 — Forensic Accounting
Fraud detection, investigation techniques, red flags, digital evidence and reporting. ICAI has released video lectures for this paper, indicating meaningful student uptake.
Suits you if you enjoyed audit and find investigative work interesting.
Paper 8 — Valuation
The three approaches, DCF including FCFF and FCFE, relative valuation multiples, terminal value, and the ICAI Valuation Standards. Involves genuine calculation.
Suits you if you are comfortable with financial management and want content directly useful in practice.
Paper 9 — Financial Services and Capital Markets
Money and capital market instruments, IPO mechanics, mutual funds, credit rating, factoring and leasing, private equity. A mix of factual recall and light calculation.
Suits you if you followed AFM well and are interested in markets.
Paper 10 — Forex and Treasury Management
Quotation conventions, forward premium and discount, parity conditions, the three exposures, hedging instruments, and treasury organisation. Numerical, with direction of quote being the main trap.
Suits you if you handled forex topics comfortably in AFM.
How to decide
Start with overlap with your CA Final subjects
This is the strongest argument. Choosing International Taxation reinforces your Final tax preparation. Valuation and Forex reinforce AFM. IBC reinforces Corporate Law. Time spent on the elective then does double duty.
Then consider calculation versus recall
If you prefer memorising definitions, look at Risk Management or Sustainability. If you prefer working with numbers, look at Valuation, Forex or FSCM.
Consider your intended area of practice
A secondary consideration, but a real one. If you plan to work in insolvency, forensic work or international tax, the elective gives you a structured introduction.
Check availability of study support
ICAI has released video lectures for some papers and not others, and the volume of available notes and practice questions varies by paper. Popular electives have more support material available.
All ten papers cost you the same twenty hours. If one of them also strengthens a CA Final subject you will be examined on for real marks, that paper is worth more to you than an equally easy paper with no overlap.
Can you change later?
The elective is selected at CA Final registration and changing it is not a routine process.
However, there is one route worth knowing: if you fail a Set C paper, you may book a test slot for a different paper within Set C, provided you complete the twenty learning hours for that new paper first.
Switching after failing means a fresh fee, twenty new learning hours and further delay. It is a fallback, not a plan. Choose carefully at the outset.
Frequently asked questions
How many Set C electives are there?
Ten papers. You choose one.
Which Set C paper is easiest?
It depends on your background. Definition-driven papers like Risk Management and Sustainability are quicker to prepare for most students, while Valuation and Forex suit those comfortable with numbers.
Does my choice affect my CA Final marks?
No. SPOM marks are not aggregated with the Final result. The choice only affects what you study for a qualifying paper.
How many hours does the Set C paper need?
Twenty learning hours on the LMS, for whichever paper you choose.
Can I switch to another Set C paper?
If you fail, yes, provided you complete the twenty learning hours for the new paper. Switching without having failed is not a routine process.
Can I book two Set C papers at once?
No. Only one paper from a set may be booked at a time, even where you have completed the hours for several.
Which elective is most popular?
Risk Management, Financial Services and Capital Markets, Valuation and International Taxation tend to attract the most students, which also means more notes and practice material is available for them.
The list of papers and their content are set by ICAI and may be revised. Confirm the current position on the ICAI website before making your election.
