CS Lalit Rajput | Sep 7, 2019 |
National Financial Reporting Authority (Amendment) Rules, 2019
About Rule(s) :
Ministry of Corporate Affairs (MCA), Government of India wide notification dated 05th September, 2019 has amended the National Financial Reporting Authority Rules, 2018, (NFRA Rules). These rules may be called the National Financial Reporting Authority (Amendment) Rules, 2019 {NFRA (Amendments) Rules, 2019}.
Commencement :
They shall come into force on the date of their publication in the Official Gazette.
Key Amendments
Sl. No. | Change Particulars | NFRA Rules 2018 | NFRA Rules 2019 |
| 1. | Rule 2 (1) (g) Definition of Division | Division means a division established by the Authority for the purpose of organizing and carrying out its functions and duties; | Division means a division “including the one headed by the chairperson or a full{ime member”, established by the Authority for the purpose of organizing and carrying out its functions and duties; |
| Rule 3 (1) (c) Classes of companies and bodies corporate governed by the Authority. (explanation inserted for Banking Companies) | No Explanation was given for Banking Companies under NFRA Rules, 2018 | “Explanation.- For the purpose of this clause, “banking company” includes ‘corresponding new bank’ as defined in clause (d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and clause (b) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980) and ‘subsidiary bank’ as defined in clause (k) of section 2 of the State Bank of India (Subsidiary Bank) Act, 1959 (38 of 1959).”. | |
| Rule 5 Annual Return Form NFRA -2 is available and Due date is 30.11.2019 | Every auditor referred to in rule 3 shall file a return with the Authority on or before 30th April every year in such form as may be specified by the Central Government. | Every auditor referred to in rule 3 shall file a return with the Authority on or before “30th November every year in Form NFRA-2 such form as may be specified by the Central Government. | |
| Rule -11 Disciplinary proceedings. | Such provisions not given under NFRA Rules, 2018 | New Provisions Added : “Provided that where the disposal does not take place within the said period, the Division shall record the reasons for not disposing off the show-cause notice within the said period, and the chairperson, may, after taking into account the reasons so recorded, extend the aforesaid period by such additional period not exceeding ninety days as he may consider necessary: Provided further that the chairperson may, if he thinks fit, grant the said extension of period more than once.’. | |
| New Annexure i.e. NFRA -2 after Form NFRA-1, inserted | Form was not available at that time. | Form NFRA -2 : Annual Return |
Annual Return To Be Filed By Auditor With The National Financial Reporting Authority
1. Applicable Law(s)
2. Category of Auditor(s), (reporting required by)
3. Important details required under NFRA -2 from Auditors :
1. Form NFRA -2 is available for understanding at :
http://www.mca.gov.in/Ministry/pdf/NFRA_05092019.pdf
2. NFRA (Amendments), Rules, 2019
http://www.mca.gov.in/Ministry/pdf/NFRA_05092019.pdf
3. NFRA Rules 2018 (Principle Rules)
http://www.mca.gov.in/Ministry/pdf/NFRARules2018_13112018.pdf
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