Version 3.0 of MCA21 to open a new chapter on corporate regulatory
MCA21 Version 3.0 to be launched in Fiscal 2021-22
Version 3.0 of MCA21 to open a new chapter on corporate regulatory oversight in India
MCA21, India’s first mission mode e-governance project, will be introduced on Monday with a data analytics-driven version.
MCA21 V 3.0 is expected to enhance enforcement, promote flexibility of doing business improve user experience, and allow for seamless integration and data interchange among regulators.
MCA 21 is the Corporate Affairs Ministry’s (MCA) online portal that makes all company-related information available to stakeholders and the general public. It was first introduced in 2006.
Advanced analytics: Union Finance Minister and Corporate Affairs Minister Nirmala Sitharaman said during the presentation of the Budget for 2021-22 that the government will deploy data analytics, artificial intelligence, and machine learning to introduce MCA 21 3.0, which will include features such as e-scrutiny, e-consultation, e-adjudication, and compliance management, among others.
This project envisions a microservices architecture with excellent scalability and enhanced analytics capabilities. It adopts worldwide best practises and is supported by new technologies like artificial intelligence (AI) and machine learning (ML). Anurag Thakur, Minister of State for Finance and Corporate Affairs, is expected to announce MCA21 version 3.0.
Under the e-scrutiny module, a central security cell established up by the MCA will examine certain straight through processing forms filed by corporations on the MCA 21 registry and mark them for further scrutiny.
The E-adjudication module was created to help registrars of companies and registered regional directors handle the increasing volume of adjudication cases, as well as to facilitate the automation of the adjudication process for users. According to sources, it will give a platform for holding online hearings with stakeholders as well as electronic end-to-end adjudication.
The MCA 21 3.0 e-consultation module will produce an online platform where proposed amendments/draft legislation will be presented on the MCA website for external users’ opinions and recommendations in a structured digital format.
MCA will deploy the Compliance Management System (CMS) to detect non-compliant firms/LLP, issue notices to the defaulting organisations, and generate warnings for MCA’s internal users.
CMS will perform as a technology platform/solution for performing rule-based compliance checks and MCA enforcement drives, in which the ministry will issue notices for effective corporate administration.
MCA21 Version 3.0 to be launched in Fiscal 2021-22
The Ministry of Corporate Affairs (MCA) will introduce MCA21 Version 3.0, which is based on data analytics, in fiscal year 2021-22. Additional modules for e-Adjudication, e-Consultation, and Compliance Management will be featured in this version. The MCA21 system is the government of India’s first Mission Mode e-Government project.
The MCA21 V3 Project is a technology-driven forward-looking project designed to improve enforcement, promoting Ease of Doing Business, improving user experience, and enabling seamless integration and data interchange amongst regulators. The project will be built on a microservices architecture with excellent scalability and strong analytics capabilities.
MCA21 V3 is expected to change India’s corporate regulatory environment by integrating with global best practises and utilising future technologies such as AI and ML. The following are the primary components of MCA21, which will be launched in Fiscal Year 2021-22:
e-Scrutiny: The MCA is in the process of establishing a Central Scrutiny Cell that will examine certain Straight Through Process (STP) Forms filed by corporations on the MCA21 registry and highlight them for further investigation.
e-adjudication: The e-adjudication module was created to help Registrars of Companies (RoC) and Regional Directors (RD) manage the increasing volume of adjudication cases by facilitating end-to-end modernisation of the adjudication process for the convenience of users. It will serve as a platform for holding online hearings with stakeholders as well as electronic end-to-end adjudication.
e-Consultation: The e-consultation module of MCA21 v3 will create an online platform where proposed changes/draft legislations will be put on MCA’s website for external users/comments and recommendations pertaining to the same in a structured digital format to digitise and strengthen the existing process of public consultation on proposed amendments and draught rules, etc. In addition, the system will enable AI-driven sentiment analysis, consolidation and categorization of stakeholders’ inputs, and the preparation of reports based on those inputs for MCA’s reference.
CMS (Compliance Management System): CMS will help MCA in detecting non-compliant companies/LLPs, providing e-notices to the defaulting companies/LLPs, and producing alerts for MCA’s internal users. CMS will provide as a technology platform/solution for MCA to undertake rule-based compliance checks and enforcement drives, with MCA issuing e-notices for corporate administration.
MCA Lab: As part of MCA21 V3, an MCA LAB consisting of corporate law professionals is being established. MCA Lab’s primary objective will be to assess the effectiveness of the Compliance Management System, e-consultation module, enforcement module, and other similar systems on a regular basis and make recommendations for improvements. In light of the dynamic corporate ecology, the Lab will enable MCA in ensuring the accuracy of outcomes produced by these essential modules.
MCA21 V3 will also include a cognitive chat bot-enabled helpdesk, mobile apps, interactive user dashboards, improved user experience through UI/UX technologies, and seamless data transmission via APIs.
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