{"id":19717,"date":"2026-08-22T12:26:18","date_gmt":"2026-08-22T06:56:18","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=19717"},"modified":"2026-08-22T14:13:55","modified_gmt":"2026-08-22T08:43:55","slug":"nfra","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/nfra\/","title":{"rendered":"National Financial Reporting Authority"},"content":{"rendered":"<h2><b>National Financial Reporting Authority Latest News<\/b><\/h2>\n<p><b>National Financial Reporting Authority <\/b><span style=\"font-weight: 400;\">is an <\/span><b>independent regulatory body<\/b><span style=\"font-weight: 400;\"> established by the Government of India under Section 132(1) of the <\/span><b>Companies Act, 2013.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h2><b>About National Financial Reporting Authority<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is an <\/span><b>independent regulatory body<\/b><span style=\"font-weight: 400;\"> established by the Government of India under Section 132(1) of the <\/span><b>Companies Act, 2013.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Its primary role is to <\/span><b>oversee and enforce compliance<\/b><span style=\"font-weight: 400;\"> with <\/span><b>accounting and auditing<\/b><span style=\"font-weight: 400;\"> standards to improve the credibility, quality, and transparency of financial reporting in India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It aims to <\/span><b>protect the interests of investors, stakeholders<\/b><span style=\"font-weight: 400;\">, and the public by ensuring high standards in the financial reporting ecosystem.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Head Office:<\/b><span style=\"font-weight: 400;\"> New Delhi.<\/span><\/li>\n<\/ul>\n<h2><b>Functions of National Financial Reporting Authority<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Recommendation:<\/b><span style=\"font-weight: 400;\"> Recommend <\/span><b>accounting and auditing policies<\/b><span style=\"font-weight: 400;\"> and standards to be adopted by companies for approval by the Central Government;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Monitor:<\/b><span style=\"font-weight: 400;\"> Monitor and enforce compliance with accounting standards and auditing standards;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Perform such other functions and duties as may be necessary or incidental to the aforesaid functions and duties.<\/span><\/li>\n<\/ul>\n<h2><b>Composition of National Financial Reporting Authority<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Companies Act requires the NFRA to <\/span><b>have a chairperson<\/b><span style=\"font-weight: 400;\"> who will be <\/span><b>appointed by the Central Government and a maximum of 15 members.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The appointment of such chairperson and members is subject to the following qualifications:<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They should have an expertise in accountancy, auditing, finance, or law.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They are required to make a declaration to the Central Government that there is no conflict of interest or lack of independence in their appointment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">All the members, including the chairperson, who are in full-time employment,<\/span><b> should not be associated with any audit firm <\/b><span style=\"font-weight: 400;\">(including related consultancy firms) during their term of <\/span><b>office and 2 years after their term.<\/b><\/li>\n<\/ul>\n<h2><b>Powers of National Financial Reporting Authority<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It has the power to <\/span><b>investigate, either suo moto or on a reference made<\/b><span style=\"font-weight: 400;\"> to it by the Central Government, into the matters of professional or other misconduct committed by any member or firm of <\/span><b>chartered accountants registered under the Chartered Accountants Act, 1949.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>It has the same powers as are vested in a civil court<\/b><span style=\"font-weight: 400;\"> under the Code of Civil Procedure, 1908, while trying a suit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Where professional or other misconduct is proved, it shall have the power to impose punishment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any person who is not satisfied with the order of the NFRA can then make an appeal to the <\/span><b>Appellate Authority.<\/b><\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2302084&amp;reg=3&amp;lang=1\" target=\"_blank\" rel=\"nofollow noopener\">PIB<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Financial Reporting Authority is an independent regulatory body established by the Government of India under Section 132(1) of the Companies Act, 2013. <\/p>\n","protected":false},"author":5,"featured_media":120501,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1826],"class_list":["post-19717","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-prelims-current-affairs","tag-national-financial-reporting-authority","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/19717","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=19717"}],"version-history":[{"count":2,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/19717\/revisions"}],"predecessor-version":[{"id":120542,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/19717\/revisions\/120542"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/120501"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=19717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=19717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=19717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}