NFRA DIGEST

BACKGROUND ABOUT NFRA ORDERS

The National Financial Reporting Authority (“NFRA”) was constituted on 1st October, 2018 by the Government of India under section 132(1) of the Companies Act, 2013 (“the 2013 Act”). The NFRA had issued its first order on 22nd July, 2020 and since then has issued 58 orders till December 31, 2023.

As mentioned in our March 2024 issue (Page 67), these orders are issued generally when irregularities are noticed by some regulators e.g. Serious Fraud Investigation Officer (SFIO), Securities Exchange Board of India (SEBI), Director General of Income Tax (Investigation), Central Economic Intelligence Bureau (CEIB), Ministry of Finance, Media Reports, Ministry of Corporate Affairs (MCA) regarding irregularities observed by FRRB except in case of DHFL matter wherein NFRA has initiated the investigation on Suo Moto. Orders are normally concluded with debarment and imposition of penalty.

Our previous issue also covered, in detail, the structure of NRFA Orders and Powers of NFRA under Section 132(4)(c) of the 2013 Act with respect to imposition of monetary penalties and debarment of the member or / and firm, where the professional or other misconduct is proved

KEY LEARNINGS FROM NFRA ORDERS

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