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Relaxations by MCA for inclusion of the name of Independent Directors in the Independent Directors Data Bank.

1. Ministry of Corporate Affairs has provided further relaxation in registration for the inclusion of the name of Independent Directors in the Independent Directors Data Bank up to 1st December 2021 and also the criteria for registration has been relaxed and the period of ten years directorship has been reduced to three years and passing marks criteria has been reduced from 60% to 50%.

2. Every individual who has been appointed as an independent director in a company shall within a period of two years from such commencement i.e., up to 30th November 2021. Further, one who intends to get so appointed as an independent director in a company, shall before such appointment, apply to the institute for the inclusion of his name in the data bank. The process is online.

3. An individual shall not be required to pass the online proficiency self-assessment test, if he has served, for a total period of not less than three years, as on the date of inclusion of his name in the databank:-

(i) As a director or key managerial personnel, as on the date of inclusion of his name in the databank, in one or more of the following, namely:-

    • a. listed public company; or
    • b. unlisted public company having a paid-up share capital of rupees ten crore or more; or
    • c. body corporate listed on any recognized stock exchange or in a country which is a Member State of Financial Action Task Force on Money Laundering and the regulator of the securities market in such member State is a member of the International Organisation for Securities Commissions; or
    • d. bodies corporate incorporated outside India having a paid-up share capital of US $2 million or more; or
    • e. Statutory Corporations set up under an Act of Parliament or any State Legislature carrying on commercial activities; or

(ii) In the pay Scale of Director or above in the Ministry of Corporate Affairs or the Ministry of Finance or the Ministry of Commerce or Industry or the Ministry of Heavy Industries and Public Enterprises and having experience in handling matters relating to corporate laws or securities laws or economic laws; or

(iii) In the pay Scale of Chief General Manager or above in the Securities Exchange Board of India or Reserve Bank of India or the Pension Fund Regulatory and Development Authority of India and having experience in handling matters relating to corporate laws or securities laws or economic laws;

4. Provided further that for the purpose of calculation of the period of three years referred to in the first proviso, any period during which an individual was acting as a director or as key managerial personnel in two or more companies or bodies corporate at the same time shall be counted only once.

5. MCA has further extended the last date for registration of details of Independent Directors in the ID Data Bank for a further period up to 1st December 2021. Notification is available at the link- http://www.mca.gov.in/Ministry/pdf/FifthAmdtRules_18122020.pdf.

For more such updates, click here –https://capage.in/

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