No Threat to the Inherent Regulatory Role of ICAI: ICAI President on NFRA

The President of the Institute of Chartered Accountants of India (ICAI), CA Naveen N D Gupta today informed that the inherent regulatory role of ICAI will be preserved even after the implementation of provisions relating to National Financial Reporting Authority (NFRA). While addressing the members, the ICAI President said that the current powers of the Institute will continue.

NFRA is a regulator for Chartered Accountants (CAs) to probe on financial crimes including money laundering.

 “I along with ICAI Vice-President CA. Prafulla Chhajed met Hon’ble Union Finance and Corporate Affairs Minister Shri Arun Jaitley, Hon’ble Union Commerce and Industry, and Civil Aviation Minister Shri Suresh Prabhu, Hon’ble Union Railways and Coal Minister Shri Piyush Goyal and Secretary, Ministry of Corporate Affairs, Shri Injeti Srinivas, and submitted representation enumerating our views and concerns, as well as the anticipated operational difficulties. They have assured that the inherent regulatory role of ICAI as provided for in the Chartered Accountants Act, 1949 shall continue.”

Earlier, there were reports that there is no representation of Chartered Accountants in the new regulatory body.

The ICAI President denied these media reports and said that “Against the media reports that ICAI will not have any representation on the NFRA Board, the Ministry of Corporate Affairs has notified the National Financial Reporting Authority (Manner of Appointment and other Terms and Conditions of Service of Chairperson and Members) Rules, 2018, and specified that ICAI President and Chairmen of Accounting Standards Board and Auditing and Assurance Standards Board of ICAI (ex-officio) shall be appointed as members of the Board of National Financial Reporting Authority.”

Section 132 of Companies Act, 2013 provided for the creation of National Financial Reporting Authority (NFRA), and one post of Chairperson, three posts of full-time members and one post of Secretary of NFRA. Union Cabinet chaired by the Prime Minister recently approved the same while specifying the details such as pay scale and other terms and conditions vis-à-vis the posts of NFRA Chairman, full-time members, and Secretary.