NFRA: Shared Responsibility for Sound Corporate Governance

New Delhi, Jun 17, 2026

Sound corporate governance is not a solitary pursuit but a shared responsibility, regulator NFRA's Chairperson Nitin Gupta said on Wednesday as he urged chief financial officers to keep on introspecting and look at the risks around.

Gupta also mentioned about various examples of financial irregularities committed by companies and emphasised that high quality financial reporting was the fundamental pillar for economic success.

The National Financial Reporting Authority (NFRA) was set up in 2018 under the Companies Act.

Addressing a conference on the 'Future of Financial Governance' organised by industry body Assocham in the national capital, Gupta said sound corporate governance is not the solitary pursuit but it is the shared responsibility that demands foresight, collaboration and trust.

There have been various instances of financial misdoings at corporates.

"We have seen at NFRA that in enforcement cases, we could identify that the preparator of account, who prepared the account was aware in what way the things were moving but the things were not presented in transparent manner.

"One of the common features is that the balance sheets look clean until the deficiencies are identified. The deeper problem is in creative accounting or lack of disclosures whereby the clarity suppressed, disguised, dressed up or delayed," Gupta said.

He also highlighted the importance of accountability as well as good financial, high quality financial reporting and governance.

According to him, high quality financial reporting is the fundamental pillar for economic success. Investors, creditors, lenders and supply chain participants rely on the financial statements and the information contained therein for making critical decisions, he added.

"Restoring confidence in corporate and financial governance and reporting will take collective courage and commitment from all of us," he said.

[Press Trust of India]