(Mint file)
(Mint file)

Sebi, government sign data sharing deal to keep tabs on fraud

  • This will involve sharing of information such as details of suspended companies and financial statements of corporates
  • This assumes importance in the wake of certain cases of alleged fraud being investigated by both Sebi and MCA, such as those involving Fortis Healthcare and Religare Enterprises ltd

In an effort to tackle rising instances of fraud, corporate sector regulators Securities and Exchange Board of India (Sebi) and the ministry of corporate affairs (MCA) will sign a memorandum of understanding (MoU) for seamless sharing of data from corporates.

This will involve linkages between the two authorities and regular exchange of data, Sebi said in a note on Friday.

The data will include details of suspended firms, delisted firms, shareholding patterns from Sebi and financial statements filed with the registrar of companies (RoC), returns of allotment of shares and audit reports.

The move comes amid alleged frauds being investigated by Sebi and the MCA into Fortis Healthcare and Religare Enterprises Ltd, and the brokers of National Spot Exchange Ltd (NSEL).

“The MoU comes in the wake of the increasing need for surveillance in the context of corporate frauds affecting important sectors of the economy. As the private sector plays an increasingly vital role in economic growth, the need for a robust corporate governance mechanism becomes the need of the hour," said Sebi.

This information will be made available for inspection, examination and prosecution, Sebi said. A data exchange steering group will keep track on information sharing and review the status to make necessary improvements.

The Serious Fraud and Investigations Office is investigating alleged diversion of funds by the former promoters of Fortis Healthcare and Religare Enterprises, Shivinder and Malvinder Singh.

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