The change overrules the previous mandate that permitted Directors of organizations to update their KYC details only once a year

The Ministry of Corporate Affairs ( MCA ) on 16 July, 2024 released a new guideline amending Rule 12A in the Companies (Appointment and Qualification of Directors) Rules, 2014. The Amendment permits Directors to update their personal mobile number or email address at any time during the financial year; the change provides Directors with the liberty to update their details at other times than the annual Know-Your-Customer ( KYC ) filing. The previous law required Directors of organizations to file their KYC annually which would then be reflected from the 1st of April of the subsequent Financial Year. As the changes made were undertaken and reflected from the beginning of every subsequent Financial Year, any changes that may have arisen in the personal details of Directors in the midst of a Financial Year would not be updated with the MCA till the beginning of the next Financial Year. The previous rule disentitled Directors who switched positions or companies through the course of the year to be able to update their personal details as and when they were to change. This often led to newly-appointed Directors missing updates and other communication concerning their new companies In line with the intent to digitalize governmental processes, the KYC details can be updated through the website of the Ministry of Corporate Affairs. A fee of Rs.500 is to be paid by Directors in order to redeem the service.

Directors can file e-form DIR-3 KYC provided in the MCA website through the following link: [https://www.mca.gov.in/content/mca/global/en/mca/e-filing/din-related-filings/form-dir3kyceform/jcr:content/root/responsivegrid/aemform.iframe.html?dataRef=&wcmmode=DISABLED]

Kindly refer to the following link for the Instruction Kit for filing of Form No. DIR-3 KYC:

[https://www.mca.gov.in/content/dam/mca/mca-forms-instruction-kit/Instruction%20Kit_Form%20No%20DIR%203%20KYC.pdf]

The new law is in effect from 1 August, 2024. The change is deemed to be welcomed with open arms by Directors and Organizations alike as the ability to change the details of Directors in real time would pave the way for a more cohesive and efficient system within the working of the MCA