MoU signed between Ministry of Corporate Affairs & SEBI June 8,
A formal Memorandum of Understanding (MOU) was signed between Union Ministry of Corporate Affairs (MCA) and Securities and Exchange Board of India (SEBI) for data exchange between two regulatory organizations and to tighten regulatory oversight…0
Key Highlights of MoU
The MoU was signed by Shri K.V.R. Murty, Joint Secretary (MCA) and Smt. Madhabi Puri Buch, Whole Time Member of SEBI in the presence of senior officers from both organizations.
As the private sector plays an increasingly vital role in the economic growth of India, thus need of the hour is a robust Corporate Governance mechanism…
Key Features of MoU
It facilitates sharing of data & information and ensures seamless linkage for regulatory purposes between MCA and SEBI on a regular and automatic basis. In addition to regular exchange of data, both SEBI and MCA will also exchange with each other, any information available in their respective databases on request, for purpose of carrying out scrutiny, investigation, inspection, and prosecution.
It enables sharing of specific information like sharing details of suspended/delisted companies, financial statements filed with Registrar by the corporate, shareholding pattern of companies, returns of shares allotment and audit reports relating to corporates.
The MoU is an ongoing initiative of MCA and SEBI, who are already collaborating via various existing mechanisms. It comes into force with immediate effect from the date it was signed…
Data Exchange Steering Group has been constituted for the fulfillment of the undertaken initiative. It will meet periodically to review data exchange status and also take steps to further improve the effectiveness of the data sharing mechanism.
This MoU comes in the wake of the increasing need for surveillance in the context of Corporate Frauds affecting important sectors of the economy. Thus MoU marks the beginning of a new era of cooperation and synergy between two crucial regulators in the Indian economy.
About Securities and Exchange Board.
It is the regulator for the securities market in India.
It was established on 12 April 12, 1988, as a non-statutory body. It was accorded statutory status in accordance with provisions of Securities and Exchange Board of India Act, 1992.
It is a quasi-legislative, quasi-executive and quasi-judicial body. It can draft regulations, conduct inquiries, pass rulings and even impose penalties.