A
What happened
The corporate affairs ministry has relaxed KYC compliance rules for company directors, allowing them to file details once every three years starting March 31. Directors who have completed their latest KYC must file next by June 30, 2028, while others must reactivate their DINs by March 31. Additionally, rules for voluntary closure of state-run companies have been simplified through a centralised electronic system. These changes reduce compliance burdens and ease exit for sick government firms.
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Key insights
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1
Reduced KYC frequency: Company directors now need to file KYC details once every three years instead of annually.
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2
Simplified state firm closure: Voluntary closure of sick state-run companies can be done easier via a centralised electronic system with simplified indemnity bond rules.
Takeaways
These regulatory relaxations aim to reduce compliance challenges for company directors and facilitate easier closure of non-performing state enterprises.