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National Financial Reporting Authority
March 3 , 2018
2329 days
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- The Union Cabinet has approved the proposal for establishment of National Financial Reporting Authority (NFRA)
- The decision aims at establishment of NFRA as an independent regulator for the auditing profession which is one of the key changes brought in by the Companies Act, 2013.
- The inclusion of the provision in the Act was on the specific recommendations of the Standing Committee on Finance.
- It aims to tighten regulatory oversight over auditors and plug loopholes.
- NFRA will be 15 members body, consisting of Chairperson, three full-time Members and one Secretary.
- The jurisdiction of NFRA
- For investigation of Chartered Accountants and their firms would extend to listed companies and large unlisted public companies.
- can also refer other entities for investigation where public interest is involved
- It will function as an overarching watchdog for auditing profession and even powers of Institute of Chartered Accountants of India (ICAI) to act against erring chartered accountants will be vested with NFRA.
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