Government amends National Financial Reporting Authority (NFRA) Rules, 2018

Notification No. G.S.R. 456(E) dated 17-06-2022

The Government has notified the National Financial Reporting Authority Amendment Rules, 2022. As per the amended rules, in case of contravention of any of the provisions of the rules, a maximum fine of Rs. 5,000 will be levied, and where the contravention is a continuing one, a further fine not exceeding Rs. 500 for every day after the first during which the contravention continues will be levied.

Prior to the amendment the general penalty as mentioned in section 450 of the Companies Act, 2013 used to be levied.

The penalty mentioned in Section 450 of the Companies Act, 2013 is as follows:

The company and every officer of the company who is in default or such other person shall be liable to a penalty of Rs. 10,000 and in case of continuing contravention, with a further penalty of Rs. 1,000 for each day after the first during which the contravention continues, subject to a maximum of Rs. 2,00,000 in case of a company and Rs. 50,000 in case of an officer who is in default or any other person.

Click Here To Read The Full Notification