●National Financial Reporting Authority (NFRA)
•It was constituted in 2018 by the Government of India under section 132 (1) of the Companies Act, 2013. It is an audit regulator.
•It came after various corporate scams including that at the Punjab National Bank
•It consists of a chairperson, who shall be a person of eminence and having expertise in accountancy, auditing, finance or law, appointed by the Central Government and such other members not exceeding 15.
It can undertake investigation of
•Companies whose securities are listed on any stock exchange in India or outside India.
•Unlisted public companies having paid-up capital of not less than Rs. 500 crores or having annual turnover of not less than Rs. 1,000 crores
•Recommend accounting and auditing policies and standards to be adopted by companies for approval by the Central Government.
•Monitor and enforce compliance with accounting standards and auditing standards.
•Oversee the quality of service of the professions associated with ensuring compliance with such standards and suggest measures for improvement in the quality of service.
•It Protects the public interest
•Where professional or other misconduct is proved, it has the power to make order for imposing penalty of—
not less than one lakh rupees, but which may extend to five times of the fees received, in case of individuals; and
not less than ten lakh rupees, but which may extend to ten times of the fees received, in case of firms.
•Its account is monitored by the Comptroller and Auditor-General of India.
•It is headquartered in New Delhi