The Centre has now brought in flexibility to the emoluments for independent audit regulator NFRA’s chairperson and its members, giving a choice to prospective applicants on their final remuneration package.

This move is expected to attract more people to these posts in the days to come, said economy watchers. NFRA is the sole independent audit regulator that was founded on October 1, 2018, to oversee the functioning of auditors of listed companies and large private companies.

Rules amended

The Corporate Affairs Ministry (MCA) has now amended the rules on terms of appointment and service conditions of NFRA chairperson and members to specify that a chairperson would have an option to draw either a consolidated monthly salary of ₹4.5 lakh without house and car or the pay and allowances as are admissible to a Secretary to the Government of India.

Similarly, every full time NFRA member will have the option to draw either a consolidated monthly salary of ₹4 lakh without house and car or the pay and allowances as are admissible to Additional Secretary to the Government of India.

It may be recalled that the Centre had, in March 2018, specified that the NFRA chairperson will be paid a salary of ₹2.5 lakh (fixed) and other allowances and benefits as are admissible to a Central government officer holding posts carrying the officer. Incidentally, the Cabinet Secretary, who is the highest paid civil servant in the country, is entitled to a fixed salary of ₹2.50 lakh per month.

‘Demotion of sorts’

Many economy watchers also see the latest MCA move as a “demotion of sorts” for NFRA chairman.  Some feel that equating the NFRA chairperson to a Secretary-ranked official for compensation purposes may compel prospective applicants to stay away from the selection process.

At the same time, some experts feel this will attract more people to the job, especially those residing in Delhi. Amarjit Chopra, former president of the CA Institute, said this is good for the people who are Delhi-based, particularly those who have a house. They may feel more attracted to these posts, he added.

The post of the NFRA chairman fell vacant on October 1 last year, after Rangachari Sridharan demitted office on completion of his three-year term. The Competition Commission of India (CCI) chairman Ashok Kumar Gupta was assigned the charge of the post of NFRA chairperson for three months from October 1 last year.

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