Government to reintroduce FRDI Bill, no timeline in place yet.
The Ministry of Corporate Affairs (MCA) is reportedly considering a series of steps to safeguard the independence of statutory auditors in India including a possible ban on these entities offering any non-audit services.
MCA is also exploring ways to break the “oligopoly" of the Big Four, facilitating the growth of homegrown audit firms and making the audit market more competitive and transparent. This could possibly include limiting the number of statutory audits one firm can take up, according to a discussion paper prepared by the Ministry. [Livemint]
On the Anvil
The Government is in the process of reintroducing the Financial Resolution and Deposit Insurance (FRDI) Bill, but the timeline has not been decided, Finance Minister Nirmala Sitharaman said on Friday.
Former Finance Minister, Arun Jaitley, had, in August 2017, introduced the FRDI Bill in the Lok Sabha. The Bill proposed a comprehensive resolution framework for revival or closure of financial institutions, including commercial banks, insurance companies, NBFCs and co-operative banks. However, it was later withdrawn following concerns raised over the ‘bail-in’ clause.
The development comes shortly after the government raised deposit insurance from ?1L to ?5L in the Union Budget 2020. [Business Today]
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