Corp Affairs Min, Sebi to start automatic data exchange

New Delhi: Bolstering efforts to curb white collar frauds, the corporate affairs ministry and markets watchdog Sebi will start automatic sharing of data between them.

The move also comes against the backdrop of concerns over corporate governance practices amid instances of misdoings and financial irregularities.

The ministry and Sebi Friday entered into a formal memorandum of understanding (MoU) for data exchange.

The pact will facilitate the sharing of data and information between Sebi and the ministry on an automatic and regular basis. "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," an official release said.

Both the sides, on request, will share any information available in their respective databases for the purpose of carrying out scrutiny, inspection, investigation and prosecution.