In today's economic system, due to the development of information technology, transmission and accurate reporting of related financial information on which financial decision making is based has particular importance. Investors who make investment in companies do not have tools as well as expertise to know the workings of the company and to ensure the accuracy of the financial reporting. The government also, due to different reasons, requires an accurate and reliable financial reporting. Moreover, accurate information regarding the economic activities of the business, certitude in the application of accounting principles and standards, and proper information transmission in the form of financial reporting are considered effective factors in realizing the basic objective of financial reporting. But due to the application of creative accounting practices, the quality of financial reporting gets affected. The present study investigates income smoothing, one of the techniques of creative accounting, with reference to the companies listed in the National Stock Exchange (NSE) of India. Apart from studying the existence of income smoothing practice among the NSE-listed companies, effort has also been made to study the factors that may affect income smoothing