New Delhi, July 9 (KNN) The Central Board of Direct Taxes (CBDT) and Securities and Exchange Board of India (SEBI) have signed a Memorandum of Understanding (MoU) for data exchange between the two organizations.

The Finance Ministry on Wednesday said the MoU will facilitate the sharing of data and information between SEBI and CBDT on an automatic and regular basis.

Additionally, SEBI and CBDT will also exchange with each other, on request and suo moto basis, any information available in their respective databases, to carry out their functions under various laws.

"The MoU comes into force from the date it was signed and is an ongoing initiative of CBDT and SEBI, who are already collaborating through various existing mechanisms," the ministry added.

A Data Exchange Steering Group has also been constituted for the initiative, which will meet periodically to review the data exchange status and take steps to further improve the effectiveness of the data sharing mechanism.

The MoU marks the beginning of a new era of cooperation and synergy between SEBI and CBDT, said the ministry.