DIR-3 KYC Norms impacting 1.8 Million Directors

Dear Reader,

Due to Non Compliance by the Directors for filing of form DIR-3 KYC, 1.8 Million Directors struck off MCA rolls. This means that Directors holding DIN (Director Identification Number) have been deactivated.

However after paying government fees of Rs. 5,000/-, Directors can update their KYC to reactivate the DIN. Having on Board of directors with reactivated DINs will not affect the functionality of the Company.

The remaining Directors of the total 3.2 Million have updated their KYC.

Despite of 60 days extension given by MCA till 15th September but till then 2.1 Million Directors have not updated their DIN.

Again MCA has given extension from 15th September till 5th October, 2018 (after paying government fees of Rs. 500/-) and during the said extension period only 3,00,000 Directors had completed their verification during extension given.

Motive of MCA behind KYC is to weed out dummy Directors & duplication, to ensure that these Directors do not flee the country when accused of wrongdoing and to check the proliferation of shell companies and keep a tab on unscrupulous elements on the Board.

MCA also announced a fresh KYC process in July for verifying the credentials of DIN holders.