GUIDELINES FOR FUNDING FOR RESEARCH STUDIES ON CORPORATE GOVERNANCE
1.1. The primary objective of the scheme viz.,'Funding for Research Studies on Corporate Governance' of the Ministry of Corporate Affairs is to better utilise the repository of corporate sector data available with the Ministry under the MCA21 egovernance system, explore and expand the scope of utilization of MCA-21 Database, formulate research studies. This is to be done with a view to extract knowledge from data that will eventually generate actionable inputs for policy making and facilitate decision making for improvement of corporate governance in a market driven economy.
1.2. The Ministry of Corporate Affairs constituted an Expert Committee (EC) under the chairmanship of Chief Economic Adviser (CEA) to GoI with the mandate to identify areas/issues/ topics/subjects for research studies/research papers, newsletters by extensively utilizing MCA-21 Database; that outcome of the research to serve as actionable policy input for the Ministry/Government. This will also include conduct of Research studies by using the MCA's database as well as other sources of research materials having implications for better corporate governance to faster, sustainable and inclusive growth.
1.3. The procedure for approving grant-in-aid, monetary ceilings, advances, instalments etc. would be as prescribed in the following paragraphs. Aspects not directly covered in these guidelines will be regulated by the provisions of the General Financial Rules of the Government of India.
2. Scope and areas for Research Studies:
2.1. The indicative list of subjects and areas for research are given below:-
(i) Integration of MCA 21 Database with other databases: Integration of MCA 21 database and databases of other departments and regulators will not only aid in avoidance of multiple filing requirements but also strengthen enforcement.
(ii) Data Characterization: An exhaustive coverage of name and definition of the data fields of various MCA forms may enable developing algorithms for periodic analysis.
(iii) Corporate Governance Index: Along with measuring companies' performance on the Corporate Governance benchmark, such an index may offer solutions to identified shortcomings.
(iv) Network Analytics: An analysis of systemic differences in reporting in different branches of a network could be matched through analytics to identify the gaps.
(v) Related Party Transactions: Related Party Transactions lie at the heart of the triangle of money laundering, wilful default and tax evasion. These need to be studied to identify the gap.
(vi) Bankruptcy Prediction: Use of MCA 21 database to study financial statements of bankrupt firms to develop a model for prediction of probability bankruptcy in firms.
(vii) Use of AI tools and Machine learning: for analysis of topics like insolvency forecast, financial stress analysis in different sectors, etc.
(viii) Utilization of XBRL format: Use of XBRL data to study the data on the threshold with respect to coverage of information filed and quality of filings, etc.
(ix) Auditor's role
(x) Accounting Standards and their monitoring: with respect to compliance by firms and their congruence with the global financial landscape.
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