The Ministry of Corporate Affairs (MCA) on 10 June offered a one-year window for independent directors in Indian businesses to clear their online self-assessment proficiency test conducted by the Indian Institute of Corporate Affairs (IICA).
Failure to do this means their names would be removed from the independent director’s databank jointly established by the MCA and IICA in December 2019, which would disqualify them from holding a board seat.
To restore their name in the databank, the ex-board member must pay a fee of INR1,000 (USD12.60) and get a no-objection certificate from the IICA. Earlier, the MCA had issued a further amendment requiring a mandatory security clearance from the Ministry of Home Affairs for board members who are citizens of countries that share a land border with India.
