The Ministry of Corporate Affairs (MCA) has amended Rule 12A of the Companies (Appointment & Qualification of Directors) Rules, 2014.

• Annual DIR-3 KYC filing has been replaced
• A simplified KYC intimation once every three years will now apply
• Amendment notified on 31 December 2025
• Effective from 31 March 2026

This follows recommendations of the High Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR) and stakeholder feedback.

Timeline Break-up

Earlier requirement: KYC every year

Revised requirement: KYC once every 3 years

Next KYC due date for compliant directors: 30 June 2028

Directors with pending KYC: DIN reactivation allowed up to 31 March 2026

Gazette reference: G.S.R. 943(E) dated 31 December 2025

What Has Changed Operationally?

A single abridged KYC form can now be used for:

• Periodic KYC compliance
• Mobile number update
• Email ID update
• Residential address update
• DIN reactivation

Digital signature & professional certification required only when details are updated

No annual certification if no changes are made

Underlying Regulatory Trend

Shift from form-driven compliance to event-based compliance

Focus on:

• Ease of doing business
• Reducing repetitive filings
• Targeted verification instead of blanket reporting

Aligns with broader MCA21 digitisation and compliance rationalisation agenda

Why This Matters

• Annual KYC had become a procedural formality, not a risk-control tool
• Triennial KYC preserves:
  • Identity integrity of directors
  • DIN hygiene
• While removing:
  • Unnecessary annual professional certification
  • Repetitive filings without data change

This is compliance simplification without diluting governance safeguards.

Bottom-Line Verdict

This amendment is a structural ease-of-compliance reform, not a relaxation of oversight.

• Less paperwork
• Lower compliance costs
• Same accountability framework

A clear case of regulatory efficiency — not regulatory dilution.

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