MCA UPDATE: Enforced remaining set of provisions of Section 132 with respect of NFRA w.e.f 24.10.2018

[Peer Mehboob]

MCA’s Notification dated 24/10/2018:           

 

MCA enforced remaining set of provisions u/s 132 of the Companies Act, 2013, which deals with the constitution of the National Financial Reporting Authority (‘NFRA’) w.e.f. October 24, 2018.

 

Accordingly, entire Section 132 has now been made effective. With this notification, now NFRA shall have the power to conduct investigation on erring Chartered Accountants and can debar an erring auditor or auditing firm for up to ten years besides slapping heavy penalties. This comes at the times when recently some auditing entities as well as auditors have come under the regulatory lens in connection with alleged misdoings at companies.

 

The NFRA which will act as an independent regulator for the auditing profession, was one of the key changes brought in by the Companies Act, 2013.

 

Link: http://www.mca.gov.in/Ministry/pdf/CommencementNotification_24102018.pdf

 

Thanks & Regards

Peer