Brief on Independent Directors (IDs) Databank
The Ministry of Corporate Affairs (MCA) has notified Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2019 dated 01st December 2019 which mandates all the existing and aspiring Independent Directors to register themselves in the databank.
Ministry of Corporate Affairs (MCA) in association with Indian Institute of Corporate Affairs (IICA) have introduced the maintenance of a comprehensive online databank, the databank shall consist of the personal, educational, professional details of such individuals along with the positions held by them.
The provision with regard to databank is provided under Section 150 of the Companies Act, 2013 read with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2019.
Last date for registration of the existing Independent Directors in Databank is 29th February 2020
Online Proficiency Examination
The MCA with an intent to foster the growth of Corporate Governance has introduced online proficiency examination for the IDs prescribed in the rules. The proficiency tests mandated under the rules would ensure that IDs are equipped with requisite expertise and knowledge in this dynamic business environment and shall hence, be able to contribute in even better manner while serving their respective Boards.
The proposed proficiency examination will be an online evaluation test conducted by the IICA comprising of the basics of Indian Company Law, Securities Law, Basic Accountancy and Corporate Governance norms, etc.
Please note that online proficiency test will be available from 01st March 2020 onwards and all existing IDs after registration will have time limit of 12 months to pass the test from the date of registration as stated above.
However, the mock test is available on the website i.e. www.independentdirectorsdatabank.in to familiarize the IDs with the test environment.
FAQs – Independent Directors registration & online proficiency test
1. Who can apply for registration?
- who has been appointed as an ID in a Company, on the date of commencement of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, shall within three months from such commencement; or
- who intends to get appointed as an ID in a company after such commencement, shall before such appointment, apply online to the institute for inclusion of his name in the data bank for one year or five years or his life-time, and from time to time take steps as specified in sub-rule (2), till he continues to hold the office of an independent director in any company.
If any individual, including an individual not having DIN, may voluntarily apply to the institute for inclusion of his name in the data bank.
2. What is the registration fees?
Please note that the registration can be done for 1 year / 5 years / lifetime. However, the registration fees for the same have been notified for 1 year subscription only which is Rs. 5000/- (Rupees Five Thousand Only) plus applicable GST rates.
3. Is there any requirement for renewal of registration?
Yes, every individual whose name has been so included in the data bank shall file an application for renewal for a further period of one year or five years or his life-time, within thirty days from the date of expiry else his name shall be removed from the list.
4. Whether Online Proficiency Self-Assessment test is Compulsory?
Yes, every individual whose name is included in the databank under sub-rule
(1) shall pass an Online Proficiency Self-Assessment test conducted by IICA within a period of one year from the date of inclusion of his name in the databank, failing which, his name shall stand removed from this databank.
5. Whether any study material or process is available?
Yes, some reference material is available on the website i.e. www.independentdirectorsdatabank.in regarding the same.
6. Is there any exemption for giving Online Proficiency Self-Assessment test?
Yes, the individual who has served for a period of not less than ten years as on the date of inclusion of his name in the databank as director or key managerial personnel (KMP) in a listed company or in an unlisted public company having a paid-up share capital of Rs. 10 crore or more.
While calculating the period of ten years referred above, a period during which an individual was acting as a director or as a KMP in two or more companies at the same time shall be counted only once.
7. Is there any minimum percentage required to clear the test?
8. How many attempts an individual can give?
There shall be no limit on the number of attempts an individual may take for passing the online proficiency self-assessment test.
9. Whether any declaration is required to be submitted to the Board?
Yes, the IDs shall submit a declaration of compliance with these rules to the Board each time he submits the annual declaration under section 149(7) of the Companies Act, 2013. Further, the Boards’ Report must disclose a statement regarding the proficiency of the IDs.
10. Do I need to intimate of change in any information provided by Databanks:
Any individual, whose name appears in the databank, shall make changes in his particulars within 30(thirty) days of such change through a web-based framework made available by the institute for this purpose.
Kindly Note: Actual Online Proficiency Self-Assessment Test will be available from March 01, 2020. However, IDs can start booking the slots now itself post their registration in the data bank.
There are two types of Registrations:
Individual Registration – For Individuals who want to become Independent directors
Corporate Registration – For Companies who want to register to avail the facilities of the ID databank.
Process Flow for Individual Registration
- The Director / Individual shall possess a valid DIN/PAN/PASSPORT (in case of Foreign Director).
- The director / individual needs to have an MCA login ID.
- Login to MCA – Go to MCA Services – Individual Registration.
- Enter the DIN/PAN/PASSPORT as the case may be.
- An OTP shall be generated on the Mobile Number.
- After verifying the OTP details, he/she will be re-directed to the IICA website through which the individual can proceed further for the registration.
- A username and password for the said login shall be sent on the Mobile No and Email ID registered with the MCA and the individual will be re-directed to independentdirectors.in wherein he /she will be required to log in with the above credentials.
- Post log in, the details to be entered further shall be as follows:
– DIN (Director Identification Number), if applicable;
– Income Tax PAN;
– the name and surname in full;
– the father’s name;
– the date of Birth;
– the nationality;
– the occupation;
– full Address with PIN Code (present and permanent);
– phone number;
– e-mail id;
|Sr. No.||Type of Course||Particulars||University||Year of Passing|
|Sr. No.||Type of Training||No. of Days||Institution||Year of Completion|
CURRENT / LAST DESIGNATION
Whether employed or retired?
Overseas experience, if any?
– any pending criminal proceedings as specified in clause
– of sub-section (1) of section 164;
– the list of limited liability partnerships in which he is or was a designated partner along with-
the name of the limited liability partnership;
the nature of industry; and
the duration- with dates;
– the list of companies in which he is or was director along with-
the name of the company;
the nature of industry;
the nature of directorship-Executive or Non-executive or Managing Director or Independent Director or Nominee Director; and
– duration – with dates.
Once all the details have been filled and saved, he /she can proceed for making the payment of registration fees. (Rs. 5000 + GST) from the review tab and post that he /she can go ahead with giving the mock test and booking the slots for the online self-assessment proficiency test.
The details screenshot for the process of registration in databank is given below:
- LOGIN TO MCA
- GO TO MCA SERVICES
ID BANK REGISTRATION STEPS FOR INDIVIDUAL REGISTRATION
3. SELECT YOU HAVE DIN OR NOT
4. DIN SELECTED YES
5. IF NO IS SELECTED IN DIN YOU WILL HAVE TO ENTER PAN AND IF NO IS SELECTED ENTER PASSPORT (Foreign Director)
6. VERIFY OTP AND CLICK ON PROCEED
7. YOU WILL BE REDIRECTED TO https://www.independentdirectorsdatabank.in/login/director
ID BANK REGISTRATION FOR CORPORATE
For CORPORATE REGISTRATION ENTER CIN OF COMPANY
8. YOU WILL RECEIVE TEXT AND EMAIL ON REGISTERED MOBILE NO. AND EMAIL ID RESPECTIVELY
9. YOU NEED TO FOLLOW THE PROCEDURE OF INDEPENDENT DIRECTOR DATA BANK AS PER THE REQUIREMENT AND MAKE THE PAYMENT
10. AFTER SUCCESSFUL PAYMENT CERTIFICATE WILL BE ISSUED