Fresh KYC norms will help bring in transparency in the boardroom: Experts

Legal experts say the KYC requirements imposed on directors are in line with global standards for checking on anti-laundering activities

It started off as a move to check proliferation of shell companies and keep a tab on unscrupulous elements in the board who misuse the system. The Ministry of Corporate Affairs announced a fresh KYC process in July for verifying credentials of Director Identification Number (DIN) holders. 

However, in the closing stages of the two-month exercise, directors complain the medicine has been worse than the disease. “The KYC process was complex and chaotic, particularly in the last few weeks,” says Arun Duggal, a long-time board member in several companies. The hardship, he adds, was greater for foreign directors. Faced with