CBDT and Sebi sign MoU to share data

The direct tax authority said that the MoU will facilitate sharing of data and information between SEBI and CBDT on an automatic and regular basis.

The Securities and Exchange Board of India (SEBI) on Wednesday announced the signing of a memorandum of understanding (MoU) with the Central Board of Direct Taxes (CBDT) to facilitate the sharing of data between Sebi and CBDT on an automatic and regular basis. The shared data could be used for the purpose of inspection and scrutiny. Sebi announced that the MoU was in force from Wednesday.

The MoU signed by the two bodies will ensure that both CBDT and Sebi have seamless linkage for data exchange. In addition to the regular exchange of data, CBDT and Sebi will also exchange from each other on request and suo moto basis, any information available in their respective databases, for the purpose of carrying out scrutiny, inspection, investigation and prosecution.

The markets regulator in its statement said that the MoU is an ongoing initiative between the two bodies and that a ‘Data Exchange Steering Group’ has also been constituted for the initiative.

“The MoU is an ongoing initiative of CBDT and Sebi, who are already collaborating through various existing mechanisms. A Data Exchange Steering Group has also been constituted for the initiative, which will meet periodically to review the data exchange status and take steps to further improve the effectiveness of the data sharing mechanism,” said Sebi. The markets regulator added that MoU marks the beginning of the enhanced co-operation and synergy between Sebi and CBDT.

The MoU was signed by Anu J Singh, Pr. DGIT (Systems), CBDT and Madhabi Puri Buch, whole time member, Sebi.