The Ministry of Corporate Affairs on 17th June 2022, has published the National Financial Reporting Authority Amendment Rules, 2022 to further amend the National Financial Reporting Authority Rules, 2018.
Through this amendment, rule 13 which deals with punishment in case of non-compliance, has been substituted as follows:
Whoever contravenes any of the provisions of these rules, shall be punishable with fine not exceeding five thousand rupees, and where the contravention is a continuing one, with a further fine not exceeding five hundred rupees for every day after the first during which the contravention continues.”
Under this rule, the Authority shall have power to monitor and enforce compliance with accounting standards and auditing standards, oversee the quality of service.
Further, the Authority shall protect the public interest and the interests of investors, creditors and others associated with the companies or bodies corporate governed by establishing high quality standards of accounting and auditing and exercising effective oversight of accounting functions performed by the companies and bodies corporate and auditing functions performed by auditors.
