Reforms in Corporate filing system: admirable, but technical challenges remain

Reforms in Corporate filing system: admirable, but technical challenges remain

The Ministry of Corporate Affairs (MCA) is bringing in reforms in the Corporate filing system, by moving from old paper-based system to a modern digital platform called MCA21 Version 3 (V3). The main vision remains India's goal of becoming a $30 trillion economy by 2047 ('Viksit Bharat @2047' vision). 

The goals include implementing key reforms throughout a company's life, using expert advice for effective future compliance, and boosting automation by integrating systems and reusing data. 

However hi-tech the vision may be, there have been various critical issues faced by users like technical glitches with server crashes, slowdowns, timeouts and errors. These issues have been frequent leading one to question about readiness of the present infrastructure for such ambitious reforms, as risks of data leakages persist, if cybersecurity is not resilient enough. 

The Ministry's consultations across multiple cities aim to collect feedback to improve the proposals. 

OUR VIEW: 

The main aim of the new reforms is not just to simplify procedures, speeding up process and making it more transparent through automation and align with the global standards. As mentioned in the report, it is "aiming to make India a leader in global regulatory standards". 

However, the gap between vision and execution remains huge as our systems have not been effective enough with technical glitches and security issues remaining prominent, while the high costs involved, too, remain a matter of concern.  

India has developed into a major global player over the last few years. The advancements in technology have however not kept pace with what has been seen in countries like UK and Singapore, where strengthening regulators have resulted in strong Corporate governance. The increasing importance of AI in the regulatory system too cannot be ignored by India as it lacks in that aspect also. The silver lining is, India is trying its best to catch up with the global world in technology related aspects. However, there are pitfalls associated with every new thing. The safeguards thus, have to be put firmly in place before such new technologies are incorporated into the system. Having already made its footmark in global trade, increased focus of technology would ensure India's dream of becoming a Viksit Bharat by 2047.  

Link: https://www.whalesbook.com/news/English/economy/Indias-Corporate-Filing-Overhaul-Digital-Leap-Faces-Tech-Hurdles/69e5afcdbca97ee10692f957