Draft rules on NFRA likely this week

NFRA will be a new body that will have powers for laying down of accounting and auditing policies and standards for adoption by companies or class of companies or their auditors

The government is expected to issue this week draft rules pertaining to the National Financial Reporting Authority (NFRA) and additional powers to Serious Fraud Investigation Office (SFIO) under the new companies law.

 

The Corporate Affairs Ministry, which is implementing the legislation, has already issued draft norms for 25 chapters of the Companies Act, 2013.

 

Draft rules related to NFRA, SFIO and companies taking deposits from the public are expected to be issued this week, according to a government official.

 

NFRA would be a new body that would, among others, have powers for laying down of accounting and auditing policies and standards for adoption by companies or class of companies or their auditors.

 

Besides, the new entity would be responsible for monitoring and ensuring compliance with accounting and auditing standards.

 

Meanwhile, the new law would give more teeth to SFIO that is currently investigating many high profile cases including the Saradha chit fund scam.

 

So far, the government has issued draft rules for 25 chapters in two tranches. The new legislation has 29 chapters.

 

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.

 

The new Companies Act replaces the nearly six-decade old legislation that governs the functioning of corporates in the country. It was approved by Parliament in August.