Directors get another 15 days for KYC compliance
New Delhi, Sept 21 (KNN) Registered directors get another chance by the Ministry of Corporate Affairs to complete their KYC (know-your-customer) formalities on payment of a lower penalty of Rs 500 instead of Rs 5,000 that was proposed earlier.
The window will re-open for fortnight for directors to complete their formalities and get free from the process of deactivation of DINs.
There are approximately 50 lakh individuals with Director Identification Number (DIN). Out of which 33lakh are considered to be active.
Further, only 12 lakh directors have complied with the new norms within the deadline, which ended earlier, with the ministry deciding to freeze other DINs.
The government decided to extend the period because, several stakeholders complained about difficulties in complying with the rules, including problems with the website.
Looking into the matter the government has given another 15 days for the completion of the process.
A KYC process will be carried out by the ministry in June for all directors, including those who have been disqualified.