National Financial Reporting Authority (NFRA)
Part of: Prelims and GS-III-Economy; GS-II- Governance
- NFRA was constituted in 2018 under section 132 (1) of the Companies Act, 2013.
- It is an independent regulator for enforcement of auditing standards and ensuring the quality of audits so as to enhance investor and public confidence in financial disclosures of companies.
- It can probe listed companies and those unlisted public companies having paid-up capital of no less than Rs 500 crore or annual turnover of no less than Rs 1,000 crore. (while ICAI retains jurisdiction of small listed companies)
- It can even investigate professional misconduct committed by members of the Institute of Chartered Accountants of India (ICAI) for prescribed class of body corporate or persons.