The setting up of National Financial Reporting Authority (NFRA), a quasi-judicial body, will not impact the role of accounting regulator ICAI, an official said today.

Under the new companies law, the government would be setting up the National Financial Reporting Authority (NFRA) -- that would monitor and ensure compliance with various accounting and auditing standards, among others.

"NFRA is now a ground reality... since the government has decided to set up this body, we will help the government in whatever manner possible," Institute of Chartered Accountants of India (ICAI) President Subodh Kumar Agrawal told PTI.

His comments come against the backdrop of concerns that establishing NFRA could result in dilution of powers of ICAI.

Agrawal noted that final structure and mandate of NFRA is yet to become clear, as the draft laws under the companies bill are in the process of being formulated.

"The government has in the past introduced changes ... Those steps did not impact us...NFRA too will not impact the role of ICAI," he said.

Regarding the provision in the new companies law that restricts auditors only a maximum of 20 companies at a time, Agrawal said, "this provision is a concern and cannot be removed now... (however) there is still scope to address it and the government will address it".

"No bill can have all positives but once it has become a law of the land we will welcome it and whatever our concerns we have talked to the government regarding them," he said.