India News Online, December 16, 2021
Finance Minister Nirmala Sitharaman is probably going to Friday introduce a Bill in Lok Sabha to strengthen the disciplinary mechanism on chartered accountants, price accountants and firm secretaries.
The Bill — The Chartered Accountants, the Cost and Works Accountants and the Company Secretaries ( Amendment) Bill 2021–has been listed within the revised listing of enterprise in Lok Sabha for the introduction on Friday, sources stated.
In the wake of a number of excessive profile audit failures and the latest blowout of the variety of non-banking finance firms reminiscent of IL&FS and DHFL, stress has been mounting on the federal government to revamp the disciplinary mechanism and enhance the functioning of the three skilled institutes as regards their disciplinary motion in opposition to erring members.
A couple of years again, the federal government had created National Financial Reporting Authority (NFRA) as the only impartial regulator for auditors of listed and enormous unlisted entities. This had led to the dilution of CA Institute’s position relating to it is oversight of its members.
Now, the excitement within the corridors of energy is that the upcoming Bill might alter the composition of the Disciplinary Committee to give extra powers to the federal government nominee, reminiscent of chairing the committee, and having a bigger say in its functioning. It could also be recalled that this proposed Bill is likely one of the 26 Bills that the Government had listed as a part of its agenda for introduction within the winter session of Parliament. The Winter Session is slated to finish on December 23.
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