Nirmala Sitharaman-Led Ministry of Corporate Affairs, SEBI Sign MoU on Data Surveillance to Curb White Collar Corporate Frauds
Nirmala Sitharaman (Photo Credits: PTI)

New Delhi, June 7: With the newly formed Cabinet announcing that the Union Budget to be presented by Finance Minister Nirmala Sitharaman on July 5 in Parliament, Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI) on Friday signed MoU on data surveillance to  curb white-collar frauds in the corporate arena .

According to the reports, the Ministry of Corporate Affairs, also headed by Union Finance Minister Sitharaman, held a meeting with SEBI in the national capital. In the meeting issues related to corporate frauds, data theft, bank frauds and others were discussed. Following this, the ministry and SEBI entered into a formal Memorandum of Understanding. PM Narendra Modi's Second Term Will 'Bring Big-Bang Economic Reforms', Says Niti Aayog Official

As per the pact, sharing of data and information between SEBI and Union Ministry will be monitored automatically and regularly. This would also bolster efforts of PM Narendra Modi-led government to curb white-collar frauds in the corporate arena. After the MoU, SEBI would start automatic sharing of data with the ministry and help prevent instances of misdoings and financial irregularities.

Briefing more about the MoU, an official said, as Economic Times reports, "It 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."

Along with the MoU, a Data Exchange Steering Group has also been constituted for the noble initiative. The group would meet periodically to review data exchange status and take steps to improve the effectiveness the data sharing mechanism, said a release.