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MCA notifies National Financial Reporting Authority Rules, 2018

GOVERNMENT OF INDIA

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, 13 Novermber, 2018

G.S.R._____(E). ln exercise of the powers conferred under sub-sections (2) and (4) of section 132, sub-section (1) of section 139 and sub-section (1) of section 469 of theCompaniesAct,2013(18 of  2013), the central  government  hereby makes  the following rules , namely:-

1. Short title and commencement.- (1)These rules may be called the National Financial Reporting Authority Rules, 2018.

(2) They shall come into force on the date of their publication in the official Gazette.

2. Definitions.- (1) In these rules, unless the context otheruise requires’-

(a) “accounting standards”, means the ‘accounting standards’ as defined in clause (2) of section 2 of the Act;

(b) “Act” means the Companies Act, 2013 (18 of 2013);

(c)”auditing standards” means the ‘auditing standards’ as defined in clause (7) of section 2 of the Act;

(d)”auditor” means an individual or a firm including a limited liability partnership incoroorated under the Limited Liability Partnership Act,2003 (6of2009) or any other Act for the time being inforce, who has been appointed as an auditor of a company or a body corporate under section 139 of the Act or under any other Act for the time being in force;

(e) “Authority” means the National Financial Reporting Authority constituted under sub-section (1) of section 132 of the Act;

(f) “chairperson” means the chairperson of the Authority;

(g) “Division” means a division established by the Authority for the purpose of organising and carrying out its functions and duties;

(h) “Form” means the Form annexed to these Rules;

(i) “full-time member” means a member who has been appointed as such under sub-section (3) of section 132 of the Act;

(j) “part-time member” means a member of the Authority other than a fulltime memoer.

(2) Words and expressions used and not defined in these rules but defined in the Act shall have the same meanings respectively assigned to them in the Act.

3. Classes of companies and bodies corporate governed by the Authority.- (1) The Authority shall have power to monitor and enforce compliance with accounting standards and auditing standards, oversee the quality of service under sub-section (2) of section 132 or undertake investigation under sub-section (4) of such section of the auditors of the following class of companies and bodies corporate, namely:-

(a) companies whose securities are listed on any stock exchange in India or outside India;

(b) unlisted public companies having paid-up capital of not less than rupees five hundred crores or having annual turnover of not less than rupees one thousand crores or having, in aggregate, outstanding loans, debentures and deposits of not less than rupees five hundred crores as on the 31st March of immediately preceding financial Year;

Click here to read whole Notification: National Financial Reporting Authority Rules 2018

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