Prelims Syllabus : Economics Mains Syllabus : GS-III Technology, Economic Development, Environment
Why in News:
- The Securities and Exchange Board of India (SEBI) and the Ministry of Corporate Affairs (MCA) signed a memorandum of understanding (MoU) to facilitate seamless sharing of data and information.
- The MoU comes in the wake of the increasing need for surveillance in the context of corporate frauds affecting important sectors of the economy.
- MoU 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. This assumes significance as the MCA has the database of all registered firms while SEBI only regulates listed entities that may have unlisted subsidiaries, with the MCA having access to all the data of such unlisted entities.
- 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, the two will also exchange with each other, on request, any available information for scrutiny, inspection, investigation and prosecution.
- 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.