New Delhi, March 1 - The Union Cabinet on March 1 approved the setting up of the National Financial Reporting Authority (NAFRA) as envisaged in the Companies Act, 2013, to function as an independent regulator for the auditing profession, Finance and Corporate Affairs Minister Arun Jaitley told reporters.
The cabinet also approved the Fuguitive Economic Offenders Bill, 2018, to be presented in the second half of the budget session of Parliament coming up later this month, which provides for taking action against offenders who flee abroad through confiscation of all their assets, including benami ones.
Both decisions come in the wake of the Rs 12,600 crore fraud on state-run Punjab National Bank (PNB) by accused diamantaire Nirav Modi.
"The Cabinet approved the proposal for establishment of the NFRA and creation of one post of Chairperson, three posts of full-time Members and one post of Secretary for NFRA," a Finance Ministry release said.
"The jurisdiction of NFRA for investigation of chartered accountants and their firms would, in the first instance, extend to listed companies and the large ones among unlisted companies," Jaitley said.
"Bulk of the cases will continue to be under the procedure of the Institute of Chartered Accountants."
While most provisions of the new Companies Act have already come into force, NAFRA will bring into force one of the two provisions of the Act that have not been implemented, he added.
It will look into accounting and auditing standards, among others.