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CMA Intermediate · Corporate Accounting and Auditing · National Financial Reporting Authority (NFRA)

Which statement about the executive body of the NFRA under section 132(3B) of the Companies Act, 2013 is correct?

The executive body consists of the Chairperson and the full-time Members of the NFRA. Section 132(3B) creates it for efficient discharge of the Authority's functions under sub-section (2), other than clause (a), and sub-section (4). Part-time members are not part of it.

  1. AIt consists of the Chairperson and all part-time members of the Authority
  2. BIt consists of the Chairperson and full-time Members of the AuthorityCorrect
  3. CIt consists only of the Secretary and employees appointed by the Central Government
  4. DIt consists of the Chairperson and the Comptroller and Auditor-General of India

Explanation

Section 132(3B) provides for an executive body consisting of the Chairperson and full-time Members for efficient discharge of functions. Part-time members are not included, and the Secretary or the CAG are not part of it.

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