"Compliance Monitoring System (MCACMS Portal) in MCA 21 by the Ministry of Corporate Affairs (MCA) has made compliance process easier and it ensures regular enforcement of Compliance requirements under the Companies Act,

CS Professional · Compliance Management, Audit and Due Diligence · PYQS · June 2025
"Compliance Monitoring System (MCACMS Portal) in MCA 21 by the Ministry of Corporate Affairs (MCA) has made compliance process easier and it ensures regular enforcement of Compliance requirements under the Companies Act, 2013." Discuss the statement and mention the steps for filing the reply to the Show Cause Notice under the system.

Answer & Explanation:

MCA Compliance Monitoring System: MCACMS Portal is an Artificial Intelligence initiative under system in MCA 21 by Ministry of Corporate Affairs to make compliance process easier and to ensure regular enforcement of Compliance requirements under Companies Act, 2013. MCACMS Portal by Ministry of Corporate Affairs is for issuing show cause notices electronically for non-compliances under Companies Act, 2013 and submitting replies from companies / directors with their clarifications and submissions. Based on the replies / submissions, the Register of Companies, Ministry of Corporate Affairs shall initiate penal actions for violations referred in the show cause notices. Following are the steps for filing reply to the Show Cause Notice: Visit the MCA CMS portal; Click on 'Reply for Show Cause Notice Tab; Click the relevant section for which SCN has been issued; Fill the CMS Reference number written on the SCN & click search. The system will validate the number; After validation click on 'Send OTP' tab. OTP will be sent on the email id on which SCN was received; Click on 'Submit Reply' tab and reply once submitted cannot be altered; The system will show a confirmation message and the 'Action' tab will show reply status. Conclusion: Hence, the above statement is absolutely correct as this portal has made easier for filing of reply to the show cause notice issued electronically for non-compliances.

Topics: MCA Compliance Monitoring System

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