MCA21 VERSION 3.0
19 May 2021 • Mukul Manral
In his book Homo Deus, celebrated author Yuval Noah Harari writes that Microsoft is developing a very sophisticated system called Cortana. Cortana is an AI personal assistant that Microsoft hopes to include as an integral feature of future versions of Windows. Users will be encouraged to allow Cortana access to all the files, emails and applications. This would enable Cortana to advise on myriad of matters. Cortana could remind you to buy something for your wife’s birthday, select the present, reserve a table at the restaurant and prompt you to take your medicine an hour before dinner. It could alert you that if you don’t stop reading now, you will be late for an important business meeting. As you are about to enter the meeting, Cortana will warn that your blood pressure is too high and your dopamine level too low, and based on past statistics, you tend to make serious business mistakes in such circumstances. So, you had better keep things tentative and avoid committing yourself or signing any deals.
Well, AI can also help us
- modernise outdated compliance requirements
- Replace prescriptive rules with outcomes-focused regulations , and
- Reduce regulatory overlap and duplication
The Ministry of Corporate Affairs (MCA) based on the recommendation or grievances received from the various stakeholders and after due deliberation, has decided to update the version of the website been used by MCA for various services for the ease of the stakeholders. It is one of the key decisions of the vision 2019-2024 of the government of India. We have briefly highlighted the key changes and addition in the services which will be brought by the MCA while introducing the Version 3.0 of their website www.mca.gov.in.
Based on the request and suggestion received from various stakeholders, the Ministry of Corporate Affairshas prepared a five-year vision that will be implemented during the year 2019-2024. Where the ministry has identified six themes and out of which one is MCA21 Version3.0 which is based on Artificial Intelligence and Analytics.
The Ministry vide its press release dated 05th February, 2021 introduced MCA21Version 3.0w.e.f. 1st April 2021, to bring simplification, efficiency and transparency in the ease of doing business for corporates.
History of Versions of MCA21:
Before the launch of this new version, the Ministry had launched two versions which were MCA21 that was implemented in 2006 and the other one is MCA21 Version 2.0 implemented in 2015-16. The MCA21 Version 2.0 was enriched with anytime and anywhere services to businesses which enhanced the experience of end users.
Objective of MCA21 Version 3.0:
- To strengthen enforcement & transform Corporate regulatory environment in India;
- To promote Ease of doing Business in India by enhancing the online platform which bringssimplification, efficiency and transparency;
- To enhance the experience of user;
- To facilitate seamless integration and data exchange among Regulators.
Features of MCA21 Version 3.0:
- The MCA21 portal is used by the Company(ies) or LLPs for filling of various documents as part of Compliance requirements under the Companies Act, 2013 read with Rules made thereunder or Limited Liability Partnership Act, 2008;
- This version will have additional modules for e-Adjudication, e-Consultation and Compliance Management System (CMS);
- The portal will be equipped with Micro-services architecture for advanced analytics & emerging digital technologies like Artificial Intelligence (AI) & Machine Learning (ML).
- The portal will be equipped with real time grievance redressal by using chat bots, virtual assistants, automatic ticket categorization and speedy resolution of complaints.
Benefits of MCA21 Version 3.0 available for a company:
- Enables the business community to get automated approvals for incorporation related applications;
- Helps faster and effective adjudication electronically;
- Enhanced transparency in government processes;
- Enhanced automation of processes.
Key Components of MCA21 Version 3.0:
- MCA has established a Central Scrutiny Cell(CSC) for inspecting e-forms filed by the stakeholders and has been processed through Straight Through Process (STP).
- The cell will identify companies which require in depth scrutiny.
- The cell shall carry out the scrutiny of e-forms filed and forward the findings to the concerned Registrar for taking further actions.
- The cell will function under the e-governance Cell of the Ministry.
- The Cell is located at the Indian Institute of Corporate Affairs, Manesar, Gurgaon.
- There will be complete digitization of the adjudication process for managing the rising volume of adjudication proceedings filed before the Registrarsand Regional Directors. It will provide a platform for conducting online hearings with stakeholders and end to end adjudication electronically.
- It will enhance transparency in government processes and automation of processes.
- To automate and enhance the current process of public consultation on proposed amendments and draft rules etc. this new version will provide an online platform wherein, proposed amendments/draft legislations will be posted on MCA’s website for external users/ comments and suggestions.
- It will also help in AI driven sentiment analysis, consolidation and categorization of stakeholder’s inputs & creation of reports on the basis thereof, for reference of MCA.
Compliance Management Systems:
- It will assist MCA to identify non-compliant companies and directors/LLP and issue e-notices to the said defaulting companies and directors/LLPs.This system will also generate alerts for internal users of MCA.
- It will also serve as a technology platform/solution for conducting rule based compliance checks and undertaking enforcement drives of MCA wherein e-notices will be issued by MCA for effective administration of corporates.It will also assist in taking action against the defaulters.
- This lab will consist of corporate law experts.The primary function will be to evaluate the effectiveness of CMS, e-consultation module, enforcement module, etc. and suggest improvement to the same on an on-going basis.
- The Lab will help MCA in ensuring the correctness of results produced by these key modules in view of the dynamic corporate ecosystem.