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MoU for data exchange
Why is it in the news?
- A Memorandum of Understanding (MOU) was signed between the Ministry of Corporate Affairs (MCA) and the SEBI for data exchange between the two regulatory organisations.
- It is to facilitate seamless sharing of data and information for carrying out scrutiny, inspection, investigation and prosecution.
More in the news
- The MoU comes in the wake of the increasing need for surveillance in the context of corporate frauds affecting important sectors of the economy.
- This assumes significance as the MCA has the database of all registered firms while SEBI only regulates listed entities that may have unlisted subsidiaries.
- MCA having access to all the data of such unlisted entities.
- There is already a protocol of sharing of data between the capital markets regulator and Ministry.
- In many cases, the regulator has also sent its orders against various entities to the MCA for further action.
- 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.
Source
The Hindu.