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MCA, SEBI sign MoU for data exchange

ANI | Updated: Jun 08, 2019 06:06 IST

New Delhi [India], Jun 8 (ANI): A Memorandum of Understanding (MOU) was signed between the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI) for data exchange between the two regulatory organisations here on Friday.
The MoU comes in the wake of the increasing need for surveillance in the context of corporate frauds affecting important sectors of the economy, a statement issued by the Ministry said.
The agreement was signed by K.V.R. Murty, Joint Secretary, MCA, and Madhabi Puri Buch, Whole Time Member, SEBI in the presence of senior officers from both the organisations.
According to the Ministry's statement, the MoU will facilitate the exchange 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.
The MoU will ensure that both MCA and SEBI have seamless linkage for regulatory purposes. In addition to regular exchange of data, SEBI and MCA will also exchange with each other, on request, any information available in their respective databases, for the purpose of carrying out scrutiny, inspection, investigation, and prosecution, the statement mentioned.
The pact comes into force from the date it was signed and is an ongoing initiative of MCA and SEBI, who are already collaborating through various existing mechanisms.
A Data Exchange Steering Group has been constituted for the initiative, which will meet periodically to review the data exchange status and take steps to further improve the effectiveness of the data sharing mechanism, the statement added.