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.
- The MoU was signed by Shri K.V.R. Murty, Joint Secretary (MCA) and Smt. Madhabi Puri Buch, Whole Time Member of SEBI in presence of senior officers from both organisations.
- As private sector plays an increasingly vital role in economic growth of India, thus need of the hour is a robust Corporate Governance mechanism for transparent functioning.
- 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 date it was signed.
- Data Exchange Steering Group has been constituted for fulfillment of undertaken initiative. It will meet periodically to review data exchange status and also take steps to further improve effectiveness of the data sharing mechanism.
Securities and Exchange Board of India :
It is the regulator for securities market in India. It was established on 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.