KYC non-compliance: Govt starts de-activating identification numbers of 21 lakh directors

NEW DELHI: 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. (AGENCIES)


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