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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Legislative Framework of Corporate Governance in India

Consider the proviso to Section 133, inserted w.e.f. 1 April 2015. Until the NFRA is constituted under section 132, the Central Government may prescribe accounting standards as recommended by the ICAI. In whose recommendations does the proviso require the Government to consult and examine, instead of the NFRA's?

Until the NFRA is constituted under section 132, the proviso to Section 133 requires the Central Government to consult and examine the recommendations of the National Advisory Committee on Accounting Standards, constituted under section 210A of the Companies Act, 1956, along with the ICAI's recommendations.

  1. AThe Securities and Exchange Board of India
  2. BThe Reserve Bank of India
  3. CThe National Advisory Committee on Accounting Standards constituted under section 210A of the Companies Act, 1956Correct
  4. DThe Institute of Company Secretaries of India

Explanation

The proviso substitutes the National Advisory Committee on Accounting Standards, constituted under section 210A of the 1956 Act, for the NFRA until the NFRA is constituted. SEBI, RBI and ICSI are not mentioned in the proviso.

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