MCA i.e. Ministry of Corporate Affairs recently released a Press Release No. 1695473 dated 05th February, 2021 regarding the Implementation of MCA 21 Version 3.0 w.e.f 1st October, 2021 i.e in Fiscal Year 2021-22. This shall be all about faceless, artificial intelligence and data analytics era of MCA.
This idea has not come suddenly. The Vision Document released by MCA for period 2019-24 had six themes which were :- Greater Ease of Doing Business, Overhaul of Corporate Governance Structure, Strengthening of Institutions, AI & Analytics Based MCA21 V3, New Legislations & Single Source of Truth for Key Financial Data. Hence no doubt it signifies Government’s absolute commitment to Overhaul MCA 21 into a complete new and AI based MCA21 V3.
The Vision of AI & Analytics Based MCA 21 V3 as per Vision Document shared by MCA in Mar’20 is as under:-
- Automated approvals for incorporation related applications
- Near real time grievance redressal by using chat bots, virtual assistants,
- Automatic ticket categorization and speedy resolution of complaints.
- e-Consultation, e-Adjudication, compliance management system and re-engineered enforcement & official liquidator modules for front office and back office users
- Set-up Central Scrutiny Centre to enable seamless Straight Through Processing (STP) of e-forms filed by corporates.
- Automated identification and follow up action on non-compliant companies
MCA 21 V3 will be Implemented by L&T Infotech.
MCA21 V3 will have a cognitive chat bot enabled helpdesk, mobile apps, interactive user dashboards, enhanced user experience using UI/UX technologies, and seamless data dissemination through APIs.
MCA21 V3 Project is a technology-driven forward looking project, envisioned to strengthen enforcement, promote Ease of Doing Business, enhance user experience, facilitate seamless integration and data exchange among Regulators. The project will have Micro-services architecture with high scalability and capabilities for advanced analytics.
Aligned with global best practices and aided by emerging technologies such as AI and ML, MCA21 V3 is envisioned to transform the corporate regulatory environment in India.
Broad MCA21 V3 will have 5 Components
MCA is in process of setting up a Central Scrutiny Cell which will scrutinise certain Straight Through Process (STP) Forms filed by the corporates on the MCA21 registry and flag the companies for more in depth scrutiny.
E-adjudication module, has been conceptualised to manage the increased volume of adjudication proceedings by Registrar of Companies (RoC) and Regional Directors (RD) and will facilitate end to end digitisation of the process of adjudication, for the ease of users. It will provide a platform for conducting online hearings with stakeholders and end to end adjudication electronically.
To automate and enhance the current process of public consultation on proposed amendments and draft rules etc., e-consultation module of MCA21 v3 will provide an online platform wherein, proposed amendments/draft legislations will be posted on MCA’s website for external users/ comments and suggestions pertaining to the same in a structured digital format. Further, the system will also facilitate AI driven sentiment analysis, consolidation and categorization of stakeholders’ inputs and creation of reports on the basis thereof, for reference of MCA.
Compliance Management System (CMS)
CMS will assist MCA in identifying non-compliant companies/LLPs, issuing e-notices to the said defaulting companies/LLPs, generating alerts for internal users of MCA. CMS will 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.
As part of MCA21 V3, a MCA LAB is being set up, which will consist of corporate law experts. The primary function of MCA Lab will be to evaluate the effectiveness of Compliance Management System, e-consultation module, enforcement module, etc. and suggest enhancements 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.