TheSecurities and Exchange Board of India (SEBI)signed aMemorandum of Understanding (MoU)with theMinistry of Corporate Affairs (MCA).
Aim:
The MoU will ensure that both the MCA and the
SEBI haveseamless linkage for
regulatorypurposes and in addition to regular
exchange of data. It also aims to facilitatethe continous sharing of data and
informationfor carrying out scrutiny, inspection,
investigation, and prosecution.
Benefits:
The MoU will facilitate the sharing of data and
information between SEBI and the MCA on anautomatic 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 statementsfiled
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 aData
Exchange Steering Groupwhich will
meet and review periodically.
Significance:
The move comes after the view to increase the
need for surveillance in thecontext of corporate frauds which affectsimportant 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
ordersagainst
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
