KYC non-compliance: Govt starts de-activating identification numbers of 21 lakh directors
Monday, September 17, 2018 IST
The government has started the process of de-activating the identification numbers of nearly 21 lakh directors of companies as they failed to comply with KYC norms, according to a senior official. The Director Identification Numbers (DINs) -- a unique number allotted to individuals who are eligible to have directorship on the boards of registered companies -- are being de-activated. They will be re-activated after a fee payment of Rs 5,000 along with the requisite form and the individuals concerned might also face action.
The latest move by the Corporate Affairs Ministry also comes at a time when the government has intensified the crack down on shell companies, which are suspected to be conduits for illicit fund flows.
In June, the ministry decided to carry out KYC (Know Your Customer) process for all directors, including those who have been disqualified. The last date for complying with the new norms by way of submitting form 'DIR-3 KYC' without fee ended on September 15.
The senior ministry official said that out of 33 lakh active directors, only around 12.16 lakh directors completed the KYC process. The balance of around 21 lakh individuals failed to comply with the requirement.
"The process of deactivating the non-compliant DINs is in progress and is likely to be completed by September 17, 2018," the ministry said in a communication on its website.
After the deadline of September 15, the MCA 21 system would mark all approved DINs -- allotted on or before March 31 this year -- against which DIR-3 KYC form has not been filed as "de-activated". The reason for de-activation would be 'non-filing of DIR-3 KYC', as per the ministry.
MCA 21 is used by stakeholders to submit requisite filings to the ministry.
According to another communication by the ministry, which is implementing the Companies Act, the form may be filed "in respect of such de-activated DINs only with a fee of Rs 5,000, without prejudice to any other action that may be taken".
Last year, the ministry had disqualified more than three lakh persons from holding directorship at registered companies amid the fight against illicit fund flows. These individuals were directors at firms that were not carrying out business activities for a long time.
Related Topics
Trending News & Articles
While the Uttarakhand High Court has asked to block 857 websites, the Ministry of Electronics and IT (Meity) found 30 portals without any pornographic content.
...
Recently posted . 64K views . 1 min read
The four boys as well as five school officials, including the director and principal, were arrested after the incident. The minors were presented before the Juvenil...
Recently posted . 10K views . 1 min read
Rahul was having an Italian passport and was carrying suitcase full of dollars. Some say it was about was it $2 million.
Rahul and his girl friend was th...
Recently posted . 9K views . 7 min read
True – Tr...
Recently posted . 8K views . 83 min read
More in National
Newly-elected Congress MLA Siddu Nyamagouda suffered severe injuries and died instantly in an accident in Bagalkote, Karnataka.
Recently posted. 860 views . 1 min read
• At least 37% of Swiggys part-time delivery partners are students working to fund their education, a Swiggy survey said
<...
Recently posted. 864 views . 2 min read
Here's how this beautiful tree, that spreads over three acres and is believed to be among the biggest in the world, was essentially brought back to life.
Recently posted. 958 views . 1 min read
Recently posted . 1K views
Recently posted . 1K views
Recently posted . 4K views
Recently posted . 2K views
Recently posted . 3K views . 19 min read
Recently posted . 3K views . 34 min read
Delhi Jal Board distributes around 900 MGD of water in the national capital. Its gets 543 MGD from haryana and 240 MGD from UP via Upper Ganga Canal.
Recently posted. 1K views . 1 min read
At present, providing father's name in the PAN application Forms (Form No.49A and Form No.49AA) is mandatory, however, the applicant has been given an option ...
Recently posted. 824 views . 2 min read