The Securities and Exchange Board of India (SEBI) signed a Memorandum of Understanding (MoU) with the Ministry of Corporate Affairs (MCA).
The MoU will ensure that both the MCA and the SEBI have seamless linkage for regulatory purposes and in addition to regular exchange of data. It also aims to facilitate the continous sharing of data and information for carrying out scrutiny, inspection, investigation, and prosecution.
The MoU will facilitate the sharing of data and information between SEBI and the MCA on an automatic and regular basis. It will also enable sharing of specific information such as details of suspended companies, delisted firms, shareholding pattern from the SEBI and financial statements filed with the Registrar by corporates, returns of allotment of shares and audit reports relating to corporates.
The MCA has the database of all registered firms whereas the SEBI only regulates listed entities that may have unlisted subsidiaries. The MCA alone has access to all the data of such unlisted entities.
The data exchange status will be reviewed and analyzed by a Data Exchange Steering Group which will meet and review periodically.
The move comes after the view to increase the need for surveillance in the context of corporate frauds which affects important sectors of the economy. It is a known fact that the private sector plays an increasingly vital role in economic growth, the need for a robust corporate governance mechanism becomes the need of the hour.
Already there exists a protocol of sharing of data between SEBI and MCA, in many cases, the regulator has also sent its orders against various entities to the MCA for further action.
Securities and Exchange Board of India (SEBI):
Formed: April 12, 1988
Acquired Statutory Status on: January 30, 1992
Headquarters: Mumbai, Maharashtra
Chairman: Ajay Tyagi
Executive Director: Anand Rajeshwar Baiwar
SEBI is the regulator for the securities market in India