Firms to get automatic alerts on compliance failures from the regulator
Posted Date: 17th August 2022
Relating to which Act: The Companies Act, 2013
Type: Registrar of Companies News Release
Pertains to employers and members of SEBI
Relevance of this news: Karma Management Global Consulting Solutions Pvt. Ltd has been in the business of Payroll, Outsourcing, and Regulatory Compliances from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing On-boarding, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.
Karma Global maintains the establishment and vendor compliances including payroll compliances on a regular basis, month after month, which is diligently executed by well-trained staff on its rolls.
Karma Global handles the compliance work of hundreds of clients as far as notices, summons, show cause, alerts, notifications, changes in laws, judgments, rules, and regulations are concerned, and it keeps on giving all the necessary alerts to all its clients and also publishes such notifications on social media and also meets the obligation of filing of returns
The work done by Karma Global is similarly related to the Registrar of Companies news item whereas a part of the revamping of the compliance management system by the Ministry of Corporate Affairs, it will now send out alerts to defaulting companies on account of noncompliance.
Subject: Companies are set to get alerts and show cause notices from the Registrar of Companies (RoC) whenever they default on a statutory filing obligation. This is part of a revamp of the compliance management system by the ministry of corporate affairs (MCA).
For greater details, appended below is the complete news item
Firms to get automatic alerts on compliance failures from the regulator
NEW DELHI: Companies are set to get alerts and show cause notices from the Registrar of Companies (RoC) whenever they default on a statutory filing obligation. This is part of a revamp of the compliance management system by the Ministry of Corporate Affairs (MCA).
The idea is to put on autopilot mode the enforcement of compliance for which specific timelines are provided in the law. This would cover instances such as issuing notices when a company defaults on filing annual returns, fails to report details of corporate social responsibility performance or when annual returns are not filed for two consecutive years which warrants removal of the company’s name from records.
The changes will come into force when the advanced version of MCA’s compliance management system is rolled out in about three months, according to a person privy to discussions in the government. “In the new IT framework, the system will be able to trigger show cause notices and human intervention will come down. Also, when firms default on filing forms and documents, the system will be able to send an alert,” said the person who spoke on condition of anonymity.
The revamped compliance management system is part of the strategy to infuse a heavy dose of technology into regulatory oversight of corporations which also entails the use of artificial intelligence and data analytics for early detection of worrying trends in governance.
An email sent to the corporate affairs ministry spokesperson on Friday remained unanswered at publishing.
Increasingly, various aspects of regulation including the grant of company registration and related services such as the opening of bank accounts are being made available on the same day of making the application with the idea of improving the ease of doing business. Enforcement of compliance under the Companies Act will be done with less of human intervention and subjectivity.