law: Companies Act, 2013 
  132.  Constitution of National Financial Reporting Authority. 
  1.      The Central
  
  Government may, by notification, constitute a National Financial Reporting
  
  Authority to provide for matters relating to accounting and auditing standards under
  
  this Act.
  2.      Notwithstanding
  
  anything contained in any other law for the time being in force, the National
  
  Financial Reporting Authority shallŚ
  a.     
  
    make
  
  recommendations to the Central Government on the formulation and laying down of
  
  accounting and auditing policies and standards for adoption by companies or
  
  class of companies or their auditors, as the case may be;
  b.    
  
    monitor
  
  and enforce the compliance with accounting standards and auditing standards in
  
  such manner as may be prescribed;
  c.     
  
    oversee
  
  the quality of service of the professions associated with ensuring compliance
  
  with such standards, and suggest measures required for improvement in quality
  
  of service and such other related matters as may be prescribed; and
  d.    
  
    perform
  
  such other functions relating to clauses (a ), (b ) and (c )
  
  as may be prescribed.
  1.     
  2.     
  3.      The National
  
  Financial Reporting Authority shall consist of a chairperson, who shall be a
  
  person of eminence and having expertise in accountancy, auditing, finance or
  
  law to be appointed by the Central Government and such other members not
  
  exceeding fifteen consisting of part-time and full-time members as may be
  
  prescribed:
  Provided
  
  that the terms and conditions and the manner of appointment of the chairperson
  
  and members shall be such as may be prescribed:
  Provided
  
  further that the chairperson and members shall make a declaration to the Central
  
  Government in the prescribed form regarding no conflict of interest or lack of independence
  
  in respect of his or their appointment:
  Provided
  
  also that the chairperson and members, who are in full-time employment with National
  
  Financial Reporting Authority shall not be associated with any audit firm
  
  (including related consultancy firms) during the course of their appointment
  
  and two years after ceasing to hold such appointment.
  1.     
  2.     
  3.     
  4.      Notwithstanding
  
  anything contained in any other law for the time being in force, the National
  
  Financial Reporting Authority shallŚ
  a.     
  
    have
  
  the power to investigate, either suo motu or on a reference made to it
  
  by the Central Government, for such class of bodies corporate or persons, in
  
  such manner as may be prescribed into the matters of professional or other
  
  misconduct committed by any member or firm of chartered accountants, registered
  
  under the Chartered Accountants Act, 1949:
  Provided
  
  that no other institute or body shall initiate or continue any proceedings in
  
  such matters of misconduct where the National Financial Reporting Authority has
  
  initiated an investigation under this section;
  a.    
  
  
  b.    
  
    have
  
  the same powers as are vested in a civil court under the Code of Civil Procedure,
  
  1908, while trying a suit, in respect of the following matters, namely:Ś
                       
  
   i.        
  
    discovery
  
  and production of books of account and other documents, at such place and at
  
  such time as may be specified by the National Financial Reporting Authority;
                      
  
   ii.        
  
    summoning
  
  and enforcing the attendance of persons and examining them on oath;
                     
  
   iii.        
  
    inspection
  
  of any books, registers and other documents of any person referred to in clause
  
  (b ) at any place;
                     
  
   iv.        
  
    issuing
  
  commissions for examination of witnesses or documents;
  a.     
  
  
  b.     
  
  
  c.     
  
    where
  
  professional or other misconduct is proved, have the power to make order forŚ
  A.     imposing penalty ofŚ
               
  
   i.        
  
    not
  
  less than one lakh rupees, but which may extend to five times of the fees
  
  received, in case of individuals; and
              
  
   ii.        
  
    not
  
  less than ten lakh rupees, but which may extend to ten times of the fees
  
  received, in case of firms;
  B.     debarring the member
  
  or the firm from engaging himself or itself from practice as member of the
  
  Institute of Chartered Accountant of India referred to in clause (e ) of
  
  sub-section (1 ) of section 2 of the Chartered Accountants Act, 1949 for
  
  a minimum period of six months or for such higher period not exceeding ten
  
  years as may be decided by the National Financial Reporting Authority.
  Explanation.Ś For the purposes of
  
  his sub-section, the expression "professional or other misconduct"
  
  shall have the same meaning assigned to it under section 22 of the Chartered
  
  Accountants Act, 1949.
  1.     
  2.     
  3.     
  4.     
  5.      Any person aggrieved
  
  by any order of the National Financial Reporting Authority issued under clause
  
  (c ) of sub-section (4 ), may prefer an appeal before the Appellate
  
  Authority constituted under sub-section (6 ) in such manner as may be
  
  prescribed.
  6.      The Central
  
  Government may, by notification, constitute, with effect from such date as may
  
  be specified therein, an Appellate Authority consisting of a chairperson and
  
  not more then two other members, to be appointed by the Central Government, for
  
  hearing appeals arising out of the orders of the National Financial Reporting
  
  Authority.
  7.      The qualifications
  
  for appointment of the chairperson and members of the Appellate Authority, the
  
  manner of selection, the terms and conditions of their service and the requirement
  
  of the supporting staff and procedure (including places of hearing the appeals,
  
  form and manner in which the appeals shall be filed) to be followed by the
  
  Appellate Authority shall be such as may be prescribed.
  8.      The fee for filing
  
  the appeal shall be such as may be prescribed.
  9.      (9 ) The
  
  officer authorised by the Appellate Authority shall prepare in such form and at
  
  such time as may be prescribed its annual report giving a full account of its
  
  activities and forward a copy thereof to the Central Government and the Central
  
  Government shall cause the annual report to be laid before each House of Parliament.
  10.   The National
  
  Financial Reporting Authority shall meet at such times and places and shall
  
  observe such rules of procedure in regard to the transaction of business at its
  
  meetings in such manner as may be prescribed.
  11.   The Central Government
  
  may appoint a secretary and such other employees as it may consider necessary
  
  for the efficient performance of functions by the National Financial Reporting
  
  Authority under this Act and the terms and conditions of service of the
  
  secretary and employees shall be such as may be prescribed.
  12.   The head office of
  
  the National Financial Reporting Authority shall be at New Delhi and the
  
  National Financial Reporting Authority may, meet at such other places in India
  
  as it deems fit.
  13.   The National Financial
  
  Reporting Authority shall cause to be maintained such books of account and
  
  other books in relation to its accounts in such form and in such manner as the
  
  Central Government may, in consultation with the Comptroller and
  
  Auditor-General of India prescribe.
  14.   The accounts of the
  
  National Financial Reporting Authority shall be audited by the Comptroller and
  
  Auditor-General of India at such intervals as may be specified by him and such
  
  accounts as certified by the Comptroller and Auditor-General of India together
  
  with the audit report thereon shall be forwarded annually to the Central
  
  Government by the National Financial Reporting Authority.
  15.   The National
  
  Financial Reporting Authority shall prepare in such form and at such time for
  
  each financial year as may be prescribed its annual report giving a full
  
  account of its activities during the financial year and forward a copy thereof
  
  to the Central Government and the Central Government shall cause the annual
  
  report and the audit report given by the Comptroller and Auditor-General of
  
  India to be laid before each House of Parliament.