Govt issues draft rules for National Financial Reporting Authority (NFRA)

Moving ahead with implementation of the new companies law, the government on Tuesday issued draft rules for the proposed National Financial Reporting Authority.

Besides NFRA, draft rules relate to Serious Fraud Investigation Office (SFIO) and acceptance of deposits by companies have been released under the Companies Act, 2013.

This is the third set of draft rules released by the Corporate Affairs Ministry for various chapters of the new legislation that replaces nearly six-decade old laws governing companies in the country.

The latest tranche pertains to Chapter V (Acceptance of Deposits by Companies), Chapter IX (NFRA) and Chapter XIV (Inspection, Inquiry and Investigation).

Stakeholders and public can provide their comments on the latest set of draft rules till November 1.

The first and second tranches of draft rules covered 16 and 9 chapters respectively. The new legislation has 29 chapters.

NFRA will have powers to lay down accounting and auditing policies and standards for adoption by companies or class of companies or their auditors.

The new entity will be responsible for monitoring and ensuring compliance with accounting and auditing standards.

The new legislation will give more teeth to SFIO that is currently investigating many high profile cases including the Saradha chit fund scam.

So far, the ministry has already received thousands of comments on various topics, including Corporate Social Responsibility (CSR) spending and auditing.

Among others, draft rules for board of directors, auditors, registration and incorporation of companies, revival of sick companies, financial accounts of corporates, National Company Law Tribunal and Appellate Tribunal, have been issued. (PTI)