Corporate affairs ministry is set to collect the details based on KYC (know your customer) of the chartered accountants, companies, company secretaries & cost accountants in order to take down any of the unethical elements within this professional arena.
According to a ministry official, the list will further help to improve the know-how of all those good companies working on the value-based principles.
Last year also the corporate ministry made the said KYC initiative to find out all those illegal companies or aspects of such chain which may hamper the quality of tax figures and ultimately countries economical database.
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Corporate Affairs Secretary asserted that the KYC requirement for directors is a healthy step toward saving countries statistics going bad. The KYC process will also stop those companies from registering under the MCA21 system.
It is to be noted that only 16 lakh directors sufficiently complained about the KYC norms against 33 lakh Director Identification Numbers (DINs).
As per the statement of the corporate ministry, “If you are defaulting in payment of deposits, the system will not let you register. If you are having non-compliant directors who have not done KYC, the system will not let you enter So the company will be forced to either remove the director or make the director compliant and then get into the system.”
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The said complaint may sooner as recently the country had to see some of the biggest issues in the economy such as IL&FS crisis making NBFC banks to restructure their loan processing system.
