Now Reading: Finance panel seeks faster NFRA reforms, sector audit studies
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Finance panel seeks faster NFRA reforms, sector audit studies
The Standing Committee on Finance has called for faster reforms at the National Financial Reporting Authority (NFRA), including a clear separation of audit quality review and disciplinary functions. It also wants sector-specific…
The Story in Brief
The Standing Committee on Finance has called for faster reforms at the National Financial Reporting Authority (NFRA), including a clear separation of audit quality review and disciplinary functions. It also wants sector-specific studies to address accounting challenges in industries like oil, energy and insurance.
The panel, led by BJP MP Bhartruhari Mahtab, noted NFRA has received 252 complaints so far, disposing of 139 with 113 pending. No final order was issued in the past year due to ongoing court cases. The government said amendments are included in the Corporate Laws (Amendment) Bill, 2026.
The Indian Opinion
The narrative that NFRA is paralysed or toothless misses the point. The Delhi High Court actually upheld most of its framework, but rightly flagged the need for procedural separation between audit review and discipline. The real drag is the Supreme Court appeal and slow legislative fixes. Will the Corporate Laws Bill, 2026, plus a clear SC ruling, finally give NFRA the teeth to act? That is the only test that matters.
Source: cfo.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
