ED to share cos' data with CCI, 14 other regulators

The Competition Commission of India (CCI) has entered into a data-sharing agreement with the Enforcement Directorate (ED). The government has notified data-sharing arrangements between the ED and 15 other agencies under the Prevention of Money Laundering Act (PMLA). This will allow the 15 regulators to access key data in possession of the ED.

Other entities in the data-sharing arrangement under the PMLA include the Serious Fraud Investigation Office, Central Vigilance Commission, Defence Intelligence Agency and special investigation teams constituted by the Department of Revenue. The ED already shares information with regulators, such as the Reserve Bank of India and the Securities and Exchange Board of India.

Market participants said the Centre has been adopting a more coordinated regulatory approach towards digital companies and foreign investments and that the latest move is in the same direction.


According to legal experts, it has always been a known risk for companies that their data may be shared with other regulators, something that the notification has formalised.

"We have been advising our clients to ensure consistency in their communications and disclosures across regulators with an assumption that there is no guarantee of confidentiality amongst regulators," said Avaantika Kakkar, head of competition practice, Cyril Amarchand Mangaldas. "This continues the trend of the increased regulatory coordination that we have been witnessing in the recent past in the government's enforcement efforts in digital and financial businesses, especially if they have received foreign investment."

These changes were brought by amending Section 66 of the PMLA which says the ED, by a "special order", can decide to share the information it has, with the CCI.

Experts said the CCI would not automatically get access to the ED's information.