41.After section 132 of the principal Act, the following sections shall be
•inserted, namely:—
•“132A. (1) With effect from such date as the Central Government may,
•by notification, specify in this behalf, no individual or firm shall be appointed
•as auditor under section 139 in respect of companies or class of companies or
•bodies corporate referred to in clause ( a) of sub -section (4) of section 132,
•unless the individual or firm intimates the details of his or its registration with
•the Institute of Chartered Accountants of India, to the National Financial
•Reporting Authority within such time, in such manner and along with such
•fees, as may be prescribed.
(2)The auditors of companies or class of companies or bodies corporate
•referred to in sub -section ( 1), shall file such documents or returns or
•information with the National Financial Reporting Authority, in such form and
•manner, within such period, and on payment of such fees, as may be specified
•by regulations by the said Authority.
(3)A person, required to furnish any document or return or any other
•information under sub-section (2), who fails to furnish any document or return
•or any other information, shall be liable to penalty of not less than twenty-five
•thousand rupees, but which may extend to five hundred rupees for each day
•during which such default continues, subject to a maximum of twenty -five
•lakh rupees, if such person is an auditor or an audit firm.
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(4)If any person, while fulfilling his obligations under this section,—
(a)makes a statement or furnishes any document or return or any
•other information which he knows or has reason to believe to be false in
•any material particular; or
(b)omits to state any material facts or particulars knowing them to
•be material; or
(c)wilfully alters, suppresses or destroys any document, return or
•information, which is required to be furnished,
•then, without prejudice to any other action which may be taken under any law
•for the time being in force, such person shall be liable to a penalty of not less
•than fifty thousand rupees, but which may extend to one thousand rupees for
•each day during which such default continues, subject to a maximum of fifty
•lakh rupees, if such person is an auditor or an audit firm.
132B.(1) The Central Government may, after due appropriation made
•by Parliament by law in this behalf, make to the National Financial Reporting
•Authority, grants of such sums of money as the Central Government may think
•fit for being utilised for the purposes of this Act.
(2)There shall be constituted a Fund, to be called the National Financial
•Reporting Authority Fund, wherein the following shall be credited, namely:—
(a)grants made by the Central Government for the purposes of the
•National Financial Reporting Authority Fund;
(b)all fees received by the said Authority under this Act;
(c)all sums received by the said Authority from such other sources
•as may be decided by the Central Government; and
(d)interest or other income received out of the investments made
•from the National Financial Reporting Authority Fund.
(3)The Fund shall be applied for meeting the expenses of the National
•Financial Reporting Authority for the discharge of its function s and for the
•purposes of this Act and for such other purposes, as may be prescribed.
132C.(1) In exercise of its functions under this Act, where the National
•Financial Reporting Authority is satisfied that it is necessary in public interest
•or the interest of investors or creditors or other persons concerned, it may give
•such directions to auditors of companies, class of companies or bodies
•corporate referred to in clause (a) of sub-section (4) of section 132, as it may
•consider appropriate.
(2)Whoever fails to comply with any direction given under
•sub-section ( 1), shall be liable to a penalty of not less than fifty thousand
•rupees but which may extend to one thousand rupees for each day during
•which such default continues, subject t o a maximum of fifty lakh rupees in
•case of an auditor, or one crore rupees in case of an audit firm.
132D.( 1) The National Financial Reporting Authority may, after
•holding inquiry, in such manner as may be prescribed and after giving a
•reasonable opportu nity of being heard, impose such penalty under
•sub-section (4) of section 132A or sub-section (2) of section 132C, as it may
•consider appropriate.
(2)While holding an inquiry, the National Financial Reporting Authority
•shall have power to summon and enforce the attendance of any person
•acquainted with the facts and circumstances of the case to give evidence or to
•Fund of
Authority.
•Power of
•Authority to
•issue directions.
•Power of
•Authority to
•impose penalty.
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•Civil courts not
•to have
jurisdiction.
•Protection of
•action taken in
•good faith.
•Power of Central
•Government to
•give directions
•to Authority.
•Power of Central
•Government to
•supersede
Authority.
•produce any document, which in the opinion of the said Authority, may be
•useful for or relevant to the subject matter of the inquiry and if, on such inquiry,
•it is satisfied that the person has failed to comply with the provisions of any of
•the sections specified in sub -section (1), it may impose such penalty as it
•considers appropriate in accordance with the provisions of any of those sections.
(3)The amount of any penalty imposed under this section, if not paid, may
•be recovered by the National Financial Reporting Authority, in such manner as
•may be prescribed, as if it were an arrear of land revenue.
(4)All sums realised by way of penalties under this section shall be
•credited to the Consolidated Fund of India.
(5)Any person aggrieved by an order of the National Financial Reporting
•Authority under this section may prefer an appeal before the Appellate Tribunal
•within a period of forty-five days from the date on which a copy of the order of
•said Authority is made available, in such manner and on payment of such fee,
•as may be prescribed.
132E.No civil court shall have jurisdiction to entertain any suit or
•proceeding in respect of any matter which the National Financial Reporting
•Authority is empowered to determine by or under this A ct and no injunction
•shall be granted by any court or other authority in respect of any action taken or
•to be taken by the said Authority in pursuance of any power conferred by or
•under this Act.
132F.No suit, prosecution or other legal proceeding shall lie against the
•Central Government or the National Financial Reporting Authority or the
•chairperson or any member or any officer or other employee of Authority for
•anything which is in good faith done or intended to be done under this Act or
•the rules or regulations made thereunder.
132G.Without prejudice to the provisions of this Act, the National
•Financial Reporting Authority shall, in exercise of its powers or the performance
•of its functions under this Act, be bound by such directions on questions of
•policy, as the Central Government may give in writing to it from time to time:
•Provided that the Authority shall, as far as practicable, be given an
•opportunity to express its views before any direction is given under this section:
•Provided further that the decision of the Central Government, on whether
•a question is one of policy or not, shall be final.
132H.(1) If at any time, the Central Government is of the opinion—
(a)that on account of grave emergency, the National Financial
•Reporting Authority is una ble to discharge the functions and duties
•imposed on it by or under the provisions of this Act; or
(b)that the National Financial Reporting Authority has persistently
•not complied with any direction given by the Central Government under
•this Act or in the discharge of the functions and duties imposed on it by or
•under the provisions of this Act, and as a result of such non-compliance,
•the financial position or the administration of such Authority has
•deteriorated; or
(c)that circumstances exist which render it necessary in the public
•interest so to do,
•the Central Government may, by notification, supersede the National Financial
•Reporting Authority for such period, not exceeding six months, as may be
•specified in the notification.
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(2)Upon the publication of a notification under sub -section ( 1)
•superseding the National Financial Reporting Authority,—
(a)the Chairperson and all the members shall, as from the date of
•supersession, vacate their offices as such;
(b)all the powers, functions and duties which may, by or under the
•provisions of this Act, be exercised or discharged by or on behalf of the
•National Financial Reporting Authority shall, until the said Authority is
•reconstituted under sub-section (3), be exercised and discharged by such
•person or persons as the Central Government may direct; and
(c)all properties owned or controlled by the National Financial
•Reporting Authority shall, until the said Authority is reconstituted under
•sub-section (3), vest in the Central Government.
(3)On the expiration of the period of supersession specified in the
•notification issued under sub -section ( 1), the Central Government may
•reconstitute the National Financial Reporting Authority by a fresh appointment,
•and in such case, any person or persons who vacated their offices under
