NFRA for single stakeholders’ advisory body

NFRA for single stakeholders’ advisory body

Part of: Prelims and GS -III – Economy 

Context In order to enhance engagement with stakeholders, the National Financial Reporting Authority (NFRA) will set up a single stakeholders’ advisory group as well as a research cell to support the group.

What is NFRA?

• National Financial Reporting Authority (NFRA) is an independent regulator to oversee the auditing profession and accounting standards in India under Companies Act 2013. 
• It came into existence in October 2018. 
• Powers & Functions: NFRA is responsible for recommending accounting and auditing policies and standards in the country, undertaking investigations, and imposing sanctions against defaulting auditors and audit firms in the form of monetary penalties and debarment from practice for up to 10 years.
• 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 classes of body corporate or persons.
• NFRA consists of one chairman, three full-time members and one secretary.

News source: TH