1.National Financial Reporting Authority Role (NFRA Regulator)

What & Where
Independent audit-oversight authority under Ministry of Corporate Affairs, India.
Constituted 1 Oct 2018 via Companies Act 2013, Sec 132(1).
HQ New Delhi; supervises listed entities and large/unlisted companies meeting prescribed thresholds.
Quick Facts for MCQs
Legal & Policy
- Mandate regulate, enforce compliance with accounting/auditing standards, recommend governance policies.
- Can be assigned additional entities by Central Government citing public interest.
- Ensures alignment with IFRS, ISA for global comparability.
Powers & Enforcement
- Authority issue directions, debar auditors, levy monetary penalties.
- Can investigate professional misconduct in specified company classes.
- Functions complement, surpass self-regulatory bodies like ICAI.
Coverage Criteria
- Automatically covers all listed companies domestic or overseas.
- Includes unlisted public firms breaching capital, turnover or borrowing thresholds.
- Insurance, banking, power, and special-Act companies fall automatically under ambit.
Significance
- Acts watchdog upholding investor confidence and corporate financial discipline.
- Strengthens audit quality, transparency after high-profile corporate frauds.
- Enhances trust in financial disclosures of large unlisted entities.
Key Data Points
| Feature | Data-Point |
|---|---|
| Latest Chairperson | Shri Nitin Gupta, Retd. IRS |
| Parent ministry | Corporate Affairs |
| Constitution date | 1 October 2018 |
| Legal basis | Companies Act 2013, Section 132(1) |
| Statutory nature | Autonomous, investigative powers |
| Headquarters | New Delhi |
| Paid-up capital threshold | ≥ ₹500 crore |
| Turnover threshold | ≥ ₹1,000 crore |
| Loans/debentures/deposits threshold | ≥ ₹500 crore |
| Foreign subsidiary coverage | ≥ 20 % income or net worth contribution |





