NFRA Gets New Chairperson: Nitin Gupta and Mandate of the Authority
Why in the news
Nitin Gupta, a retired IRS officer and former CBDT Chairman, became head of the National Financial Reporting Authority, the apex independent regulator for accounting and auditing standards.
About NFRA
- Status: statutory body of the Ministry of Corporate Affairs; HQ New Delhi.
- Set up: 1 October 2018, Section 132(1), Companies Act, 2013.
- Mandate: enforce standards, monitor audit quality, probe auditor misconduct, protect investors.
Entities under NFRA
| Entity | Condition |
|---|---|
| Listed companies | All |
| Unlisted public companies | Paid-up capital or borrowings/deposits/debentures ₹500 crore or more, or turnover ₹1,000 crore or more |
| Insurers, banks, power firms | Covered, with special-Act bodies |
| Foreign arms of Indian firms | 20% or more of consolidated income or net worth |
| Referred entities | Cases sent by the Centre in public interest |
Exam angle
- Ministry: MCA; section: 132(1); formed: 2018.