In the words of Manoj Govil, secretary-MCA extensive public consultations will be conducted while reviewing, which is designed to make compliance simpler, and ensure that regulation is more system-driven and efficient.

Ministry of Corporate Affairs (MCA) has launched an exhaustive review of rules and regulations, which includes the rules for accounting and auditing procedures.

In the words of Manoj Govil, secretary-MCA large-scale public consultations will be held to conduct the review. The review is designed to make compliance simpler and make the regulation more system-driven and efficient.

This review will be expected to encompass all laws under the MCA including the Companies Act, LLP Act as well as the Insolvency & Bankruptcy Code. It will also include all the regulatory bodies that are involved, like the National Financial Reporting Authority, The Institute of Chartered Accountants of India, the Competition Commission of India, the Institute of Company Secretaries of India, and the Institute of Cost Accountants of India.

Govil stated at the very first international conference organized by the NFRA in this city that the review was in line with the finance minister's declaration in the FY24 Budget speech requesting regulators of the financial sector to streamline and lower the cost of complying.

The ministry is said to have formed groups to work with the parties involved as well and the review is scheduled to finish by the FY25 deadline.

"In the last few years, the Companies Act was reformed to decriminalize business to a great extent. The rules in place must be changed to facilitate the process of conducting business. In addition, the ministry should examine ways to reduce the influence of financial regulators on corporate decisions. The business community would be happy with any change in the rules if they result in better transparency and disclosure of information," said Ravi Singhania, managing partner of Singhania & Partners LLP.

The new rules are being conducted at a moment when record numbers of new businesses or LLPs are being established. According to MCA's most recent statistics, around 0.17 million companies were formed in the first 11 months of FY24. This is more than the total amount of incorporation that was recorded for the entire financial year in the previous.