The government announced a change in the annual KYC filing requirement for directors in companies, replacing it with a simpler KYC intimation once every three years starting from March 31, 2026. This decision follows a review of the annual KYC requirement for directors under rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014. The Ministry of Corporate Affairs, after examining the matter and considering recommendations from the High-Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR) and inputs from stakeholders, has amended the relevant rule in consultation with concerned ministries and departments.
The amendment, effective from March 31, 2026, eliminates the need for annual KYC filings and introduces a simpler KYC intimation process to be done once every three years. The revised KYC Form can now be utilized for various purposes, including KYC compliance, updating mobile numbers, email addresses, residential addresses, and re-activation of DIN. Directors or DIN holders will only need to verify and certify the KYC Form through digital signatures if it is submitted for updating mobile numbers, email addresses, or residential addresses.
This regulatory change aims to streamline compliance for directors across all companies, offering them significant ease in meeting their obligations. Directors who have already completed their KYC are automatically included under the new provisions, with their next filing due by June 30, 2028. For those directors who have not yet submitted their KYC Form, they can continue to re-activate their DINs as per the existing provisions until March 31, 2026.
