Union Cabinet approves establishment of NFRA to oversee auditors

The Union Cabinet has approved the establishment of National Financial Reporting Authority (NFRA). The NFRA will act as an independent regulator for the auditing profession which was one of the key changes brought in by the Companies Act 2013. The jurisdiction of NFRA for investigation of Chartered Accountants and their firms will be extended to the listed companies and large unlisted public companies. The Cabinet also gave nod to the Fugitive Economic Offenders Bill – 2018 to deal with those escaping overseas to avoid getting caught. The Bill will help in laying down measures to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian Courts. According to Union Finance ministry, the economic offences worth Rs 100 crore or more will come under the purview of the Bill.