Amendments to DIR-3 KYC compliance require directors to file every three financial years. The new system also mandates that changes in particulars still be reported within specified timelines.
Changes to DIR-3 KYC Compliance Framework
Beginning 31 March 2026, the amendments replace annual DIR-3 KYC compliance with a requirement for directors to file their KYC details once every three consecutive financial years. This modification aligns the regulatory framework with contemporary practices while decreasing the compliance burden on directors.
Directors are now obligated to track their filing cycle based on when their Director Identification Number (DIN) was allocated and are required to ensure compliance by 30 June of the relevant year. Additionally, they must continue to report any changes in their particulars within a stipulated period.
This change has significant practice implications. Corporate practitioners must ensure that their clients are aware of these new timings and reporting requirements to avoid potential penalties associated with non-compliance.
Citations
- DIR-3 KYC Regulations (2026) 1
