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 crackdown 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. PTI
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. PTI
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