MCA and SEBI sign MoU to Tighten Regulatory Oversight

The Ministry of Corporate Affairs (MCA) and Securities and Exchange Board of India (SEBI) has signed a Memorandum of Understanding (MoU) for data exchange between the two regulatory organizations to ensure better regulatory oversight.

Components of MoU

• Facilitating the sharing of data and information between SEBI and MCA on an automatic and regular basis.
• Enabling 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.
• To ensure that both MCA and SEBI have seamless linkage for regulatory purposes.
• To exchange with each other any information available in their respective databases, for the purpose of carrying out scrutiny, inspection, investigation and prosecution on request.

Corporate Frauds are affecting important sectors of the economy. As the private sector is playing an increasingly vital role in economic growth, the need of the hour is a robust Corporate Governance mechanism. The MoU aims to facilitate a robust Corporate Governance through better regulatory oversight.