MCA has amended the National Financial Reporting Authority Rules, 2018 vide notification dated 05th September, 2019. The amendments are effective from the same date. Key highlights of the amended rules are as follows:

• In rule 3 relating to ‘classes of companies and bodies corporate governed by the Authority’, “banking company” includes ‘corresponding new bank’ as defined in section 2(d) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and section 2(b) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 and ‘subsidiary bank’ as defined in section 2(k) of the State Bank of India (Subsidiary Bank) Act, 1959.
• Every auditor of companies or body corporate as specified in rule 3 shall file a return with the Authority on or before 30th November every year in Form NFRA-2. Previously, the said return was required to file on or before 30th April.
• In the disciplinary proceedings, where the Division does not dispose the show-cause notice within a period of 90 days of the assignment through a summary procedure as specified by the Authority, the Division shall record the reasons for not disposing off the show-cause notice within the said period, and the chairperson, may, after taking into account the reasons so recorded, extend the aforesaid period by such additional period not exceeding 90 days as he may consider necessary. However, the chairperson may, if he thinks fit, grant the said extension of period more than once.