MCA and SEBI ink MoU to tighten regulatory oversightDate: 08 June 2019 Tags: Ministries & Departments
Union Ministry of Corporate Affairs (MCA) and Securities and Exchange Board of India (SEBI) have signed Memorandum of Understanding (MoU) for data exchange between the two regulatory organizations. The MoU aims to facilitate robust Corporate Governance through better regulatory oversight.
The MoU comes in wake of increasing need for surveillance in context of Corporate Frauds affecting important sectors of economy. As the private sector plays increasingly vital role in economic growth, there is urgent need for robust Corporate Governance mechanism.
Components of MoU
- It will facilitate sharing of data and information between SEBI and MCA on an automatic and regular basis.
- It will enable sharing of specific information such as details of suspended companies, delisted companies, shareholding pattern from SEBI and financial statements filed with the Registrar by corporates, returns of allotment of shares, audit reports relating to corporates.
- It will ensure that both MCA and SEBI have seamless linkage for regulatory purposes. It will also enable exchange between MCA and SEBI any information available in their respective databases, for the purpose of carrying out scrutiny, inspection, investigation and prosecution on request.
- Data Exchange Steering Group: It has been constituted for this initiative, which will meet periodically to review data exchange status. It will also take steps to further improve the effectiveness of the data sharing mechanism.