National Financial Reporting Authority: Powers, Functions and Companies Act 2013

UPSC Relevance: Economy | Corporate Governance

Key Facts

  • NFRA = National Financial Reporting Authority.

  • Constituted in 2018.

  • Established under Section 132 of the Companies Act, 2013.

Functions

  • Recommend accounting and auditing standards.

  • Monitor compliance with such standards.

  • Oversee audit quality.

  • Investigate professional misconduct in prescribed cases.

  • Protect investors and public interest.

Significance

NFRA strengthens:

  • Corporate accountability.

  • Audit independence.

  • Financial reporting quality.

  • Investor confidence.

Prelims Pointer:
NFRA is an independent audit and accounting oversight authority, not a stock-market regulator.