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The National Financial Reporting Authority (Meeting for Transaction of Business) Rules, 2019.
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....he National Financial Reporting Authority (Meeting for Transaction of Business) Rules, 2019.<br>By: - YAGAY andSUN<br>Corporate Laws / IBC / SEBI<br>Dated:- 9-6-2025<br>The National Financial Reporting Authority (NFRA) is an autonomous regulatory body established by the Ministry of Corporate Affairs (MCA) under Section 132 of the Companies Act, 2013. It is tasked with ensuring the implementation of accounting and auditing standards and overseeing the quality of audits, particularly for public interest entities. The NFRA (Meeting for Transaction of Business) Rules, 2019 provide the procedural framework for conducting meetings and ensuring the smooth functioning of the National Financial Reporting Authority in relation to the transaction of ....
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....its business. These rules detail the process of how decisions are made, meetings are conducted, and how business is transacted within the authority. Key Provisions of the National Financial Reporting Authority (Meeting for Transaction of Business) Rules, 2019 1. Purpose of the Rules The purpose of these rules is to establish a structured and transparent framework for the conduct of meetings, decision-making processes, and transaction of business in the National Financial Reporting Authority (NFRA). These rules ensure that business is conducted in an orderly manner and decisions are taken with due diligence, considering all relevant facts and legal requirements. 2. Meetings of the NFRA 2.1. Frequency of Meetings * The NFRA is require....
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....d to hold regular meetings to discuss and decide upon matters related to its functions, powers, and duties under the Companies Act, 2013. * These meetings can be called as needed and should be scheduled at appropriate intervals to facilitate the timely discharge of duties. 2.2. Chairperson of the Meeting * The Chairperson of the NFRA presides over the meetings. In the absence of the Chairperson, the Vice-Chairperson or a designated member may preside over the meeting. 2.3. Quorum for the Meeting * The quorum for any meeting of the NFRA is the presence of at least half of the total members of the authority, which should include the Chairperson or the Vice-Chairperson. * If a quorum is not present at the scheduled time, the meeting ....
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....will be rescheduled to a later time or date. 3. Transaction of Business in the NFRA 3.1. Types of Business The NFRA will transact business related to its role, including but not limited to: * Approval of audit reports or investigations conducted by NFRA. * Implementation of accounting and auditing standards. * Reviewing and approving regulatory or policy proposals. * Taking actions on violations of accounting and auditing norms. 3.2. Decision-Making Process * Decisions are made by the majority vote of the members present at the meeting. In case of a tie, the Chairperson has a casting vote. 3.3. Business by Circulation * In certain cases, when a meeting cannot be convened promptly, the NFRA may transact business through circ....
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....ulation (i.e., circulating documents for the members' review and approval). * Business by circulation should be considered only for routine matters or decisions that do not require detailed discussion. * Decisions taken by circulation are subject to ratification at the next formal meeting. 4. Agenda for Meetings 4.1. Notice of Meeting * A formal notice is to be given to all members of the NFRA in advance of a scheduled meeting. * The notice should include the agenda for the meeting, which should outline all the business to be transacted. 4.2. Agenda Items The agenda typically includes: * Approval of minutes of previous meetings. * Matters related to the enforcement of auditing and accounting standards. * Review of ongo....
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....ing investigations or cases under the NFRA's purview. * Proposals for new regulations or amendments to existing regulations. 4.3. Supporting Documents Members are provided with relevant documents to support the discussions on each agenda item. This ensures that the members are well-informed and can make decisions based on accurate and complete information. 5. Minutes of the Meeting 5.1. Recording of Minutes * The minutes of the meetings must be recorded in a detailed and accurate manner, including: * A summary of discussions. * Decisions taken. * Voting results (if applicable). * Any action points assigned to members for follow-up. 5.2. Approval of Minutes * The minutes of the meeting must be approved at the next meeting ....
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....of the NFRA. Once approved, they are signed by the Chairperson and kept in the official records of the NFRA. 6. Committees of NFRA 6.1. Formation of Committees * The NFRA has the authority to form various sub-committees as required, depending on the issues and matters at hand. * These committees can be tasked with handling specific aspects of the NFRA's operations, such as investigations, standards development, or compliance matters. 6.2. Delegation of Powers * The Chairperson of the NFRA may delegate certain powers and responsibilities to the committees formed within the NFRA. This delegation ensures that the work of the NFRA is carried out efficiently. 7. Confidentiality of Business 7.1. Confidential Nature of Discussions ....
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.... * Members of the NFRA are bound by confidentiality rules, and they must maintain the confidential nature of all discussions, reports, and documents received or discussed in the meetings. * Any breach of confidentiality can result in penalties or action taken against the individual member. 7.2. Handling Sensitive Information * Sensitive or proprietary information discussed in NFRA meetings, such as audit reports or financial investigations, must be handled with utmost care to ensure that it is not leaked or misused. 8. Voting Process 8.1. Voting Mechanism * Votes on decisions are cast during the meetings, and members vote on resolutions proposed for various items. * Each member, including the Chairperson, has a voting right. The ....
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....decision is typically based on the majority vote of the members present. 8.2. Casting Vote * In case of a tie, the Chairperson has a casting vote, allowing them to break the deadlock and make a final decision. 9. Delegation of Powers to Chairperson The Chairperson of the NFRA is empowered to: * Call meetings as required. * Decide on the agenda and items to be discussed in the meeting. * Oversee the business conducted during the meetings. 10. Penalties for Non-Compliance 10.1. Non-Compliance with Rules * Any member of NFRA who fails to comply with the procedures outlined in these rules may face disciplinary actions, including penalties or removal from office. 10.2. Legal Action for Misconduct * In cases where there is a bre....
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....ach of confidentiality or misconduct by a member, the NFRA may initiate legal proceedings to ensure that the member is held accountable. 11. Conclusion The NFRA (Meeting for Transaction of Business) Rules, 2019 ensure that the business of the National Financial Reporting Authority is conducted in a structured, transparent, and efficient manner. These rules provide a clear framework for the operation of meetings, the decision-making process, and the recording of minutes, which helps in maintaining the integrity and accountability of the authority. By establishing clear processes for meetings, voting, and confidentiality, the NFRA ensures that its actions and decisions are well-governed, legally sound, and consistent with the objectives of....
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.... maintaining high standards in financial reporting and auditing.<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....