Companies Director Identification Number (Second Amendment) Rules, 2012

Notification, [F. No. 1/1/2011-CL V], Dated 05.06.2012

G.S. R….. (E).- In exercise of the powers conferred by clause (a) and (b) of sub-section (1) of section 642 read with sections 266 A, 266 B and 266 E of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules, further to amend the Companies (Director Identification Number) Rules, 2006 namely:-

1.  Short title and commencement

(1)      These rules may be called the Companies Director Identification Number (Second Amendment) Rules, 2012.

(2)      They shall come into force with effect from 11^th June, 2012.

2. In the Companies (Director Identification Number) Rules, 2006, in form DIN-1, after serial number 4, the following serial number shall be inserted, namely:-

“4A. Whether resident in India    Yes/No”

Renuka Kumar

Joint Secretary to Govt. of India

Note: – The principal notification was published vide number G. S. R. 649 (E), dated the 19th October, 2006 and subsequently amended vide the following notifications:-

S. No	Notification Number	Date
01	GSR 14 (E)	09.01.2007
02	GSR 265 (E)	29.03.2007
03	GSR 849 (E)	15.10.2010
04	GSR 258 (E)	26.03.2011
05	GSR 427 (E)	02.06.2011
06	GSR 507 (E)	05.07.2011
07	GSR 395 (E)	28.05.2012

Click here to download the complete text of the above Notification in PDF Format- G.S.R. (E) dated 05.06.2012.

Source: Ministry of Corporate Affairs.

Companies (Director Identification Number) Amendment Rules, 2012

Notification

Dated 28.05.2012

[F.No. 2/1/2011-CL V]

G.S.R……(E).- In exercise of the powers conferred by clause (a) and clause (b) of sub-section (1) of section 642 read with sections 266 A, 266 B and 266 E of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules, further to amend the Companies (Director Identification Number) Rules, 2006 namely:-

1. Short title and commencement

(1) These rules may be called the Companies (Director Identification Number) Amendment Rules, 2012.

(2) They shall come into force with effect from 29^th May, 2012.

2. In the Companies (Director Identification Number) Rules, 2006,-

(a) after FORM NO. DIN 1, in Annexure 1, for item (i) and entries relating thereto, the following shall be substituted, namely:-

“(i) The photograph and document attached to the Form DIN-1 belongs to me. I further confirm that all required documents have been duly attested by me or duly attested by either Public Notary or a Gazetted Officer of a Government and are attached to the Form DIN-1 and”.

(b) in FORM NO. DIN-4,

(i) in serial number 2, after the box and words “ Present Residential address”, the following shall be inserted, namely:-

• Photograph of Director/designated Partner.
• Residential Status
• Verification as per Annexure- 1 of DIN rules
• Verification as per Annexure- 2 of DIN rules

(ii) After serial number 6 and entry relating thereto, the following shall be inserted, namely:-

” 6A. Whether resident in India- Yes/ No

(iii) in Attachments, against serial number 1, in the entry, the asterisk mark ‘*’ shall be omitted.

(c) after FORM NO. DIN 4, in Annexure 2, –

(i) in item (i) after sub-item (I) and entry relating thereto, the following shall be inserted, namely:-

“(m) Photograph of Director/designated partner

(n) Residential Status

(o) Verification as per Annexure- 1 of DIN rules

(p) Verification as per Annexure- 2 of DIN rules”;

(ii) for item (ii) and entry relating thereto, the following shall be substituted, namely:-

“(ii) The photograph and document attached to the Form DIN-4 belongs to me. I further confirm that all required documents have been duly attested by me or duly attested by either Public Notary or a Gazetted Officer of a Government and are attached to the Form DIN-4 and”.

Renuka Kumar

Joint Secretary

Note: – The principal notification was published vide number G. S. R. 649 (E) dated the 19^th October, 2006 and subsequently amended vide the following notifications:-

S. No.	Notification Number	Date
01	GSR 14 (E)	09.01.2007
02	GSR 265 (E)	29.03.2007
03	GSR 849 (E)	15.10.2010
04	GSR 258 (E)	26.03.2011
05	GSR 427 (E)	02.06.2011
06	GSR 507 (E)	05.07.2011

Click here to download the complete text of the above Notification in PDF Format- Notification- Companies (Director Identification Number) Amendment Rules, 2012.

Source: Ministry of Corporate Affairs.

Allotment of Director’s Identification Number (DIN) under Companies Act, 1956

General Circular No. 4/2012, No 2/1/2011-CL.V, Dated the 9^th March, 2012

To

All Regional Directors

All Registrar of Companies.

In continuation of General Circular Nos. 32/2011 dated 31.05.2011, 66/2011 dated 04.10.2011 and 70/2011 dated 15/12/2011 on the subject cited above, I am directed to say that the time for filing form DIN-4 by DIN holders for furnishing PAN and to update PAN details has been extended upto 30.04.2012.

Click here to download the above Circular- General Circular No. 4/2012 dated 09.03.2012.

Source: Ministry of Corporate Affairs

Grant of Loans and Advances and Award of Contracts to Directors of Banks and their Relatives

RBI/2011-12/385

DBOD.No.BP.BC.79/21.01.001/2011-12 dated February 3, 2012

The Chairman and Managing Directors/Chief Executive Officers of All Scheduled Commercial Banks (Excluding RRBs)

Please refer to instructions contained in our circulars DBOD.No.GC.BC.34/C.408C(59)S-84 dated April 12, 1984 read with DBOD.No.BC.110/21.01.001/94 dated October 10, 1994 and DBOD.No.BP.BC.23/21.01.001/96 dated March 1, 1996 on the above subject.

2. We have come across an instance, where loans and advances have been sanctioned to the relative of a Director of a bank, at a concessional rate of interest, thereby circumventing the spirit of the restrictions contained under Section 20 of the Banking Regulation Act, 1949. The matter has, therefore, been examined by us and it has been decided that the restrictions as contained in Section 20 of the Act would apply to grant of loans and advances to spouse and minor/dependent children of the Directors of banks. However, banks may grant loan or advance to or on behalf of spouses of their Directors in cases where the spouse has his/her own independent source of income arising out of his/her employment or profession and the facility so granted is based on standard procedures and norms for assessing the creditworthiness of the borrower. Such facility should be extended on commercial terms. As mentioned in the circular dated March 1, 1996, all credit proposals for Rs. 25 lakhs and above should be sanctioned by the bank’s Board of Directors/Management Committee of the Board. The proposals for less than Rs. 25 lakhs may be sanctioned by the appropriate authority in banks in terms of the powers delegated to them.

3. The above norms relating to grant of loans and advances will be equally applicable to award of contracts.

Click here to download- Grant of Loans and Advances and Award of Contracts to Directors of Banks and their Relatives- 03.02.2012- PDF Format.

Source: Reserve Bank of India.

Frequently Asked Questions (FAQs) on Corporate Bank Account

1. Is this form applicable for opening account in any bank/branch anywhere in India?

Presently, only following banks are covered opening of corporate bank account through MCA:

• ICICI Bank
• HDFC Bank
• Andhra Bank
• Kotak Mahindra Bank

2. Whether only director can be assigned as an authorized person on behalf of the Company?

No, it is not mandatory to assign the director to act as a authorized person. Any other person associated with the company can also be assigned as a authorized person. In case the authorized person is a director, then his/ her DIN shall also need to be provided along with the income tax PAN.

3. What information to be given under ‘Sources of Fund’, if company is newly incorporated?

User shall provide the information related to the main source of future income i.e. either through trading business, manufacturing unit, provisioning/ rendering of services, etc under ‘Sources of Fund’.

4. Under ‘Expected Balance’ whether Minimum Balance or Maximum Balance is to be given?

User shall provide the minimum balance which he/ she is expecting to maintain in the bank account to be opened.

5. How to update the details in case of any changes made relating to Authorised Person/Address/Bank Branch etc?

There is no facility to make any changes/ updations through this form. User is required to contact the concerned bank branch for such corrections/updations.

6. Who will be the approval authority of the form?

Concerned bank in which the bank account is to be opened shall be the approval authority of the form.

7. Is it a mandatory to file this form for every company being incorporated in MCA21 system?

No, It is not mandatory for every company to file this form. This is an additional facility provided to the corporate for opening of their bank account through MCA portal without the need of submitting physical papers with the bank and thereby reducing the overall service delivery time.

8. Is it possible to open the account in the earlier process (submission of physical documents) after implementation of the new process?

Yes, User has the option either to open the bank account through the earlier process (submission of form physically in the bank) or through the new process (online submission of form on the MCA portal).

9. Can a company change the bank and/or branch through the MCA21 system?

There is no facility to make any changes/ updations in bank / branch details through the MCA21 system. User has to contact the concerned bank/ branch for any changes/ updations in the details.

10. Can an existing account holder change the bank and branch details by filing such form?

No, this form is for opening of a new corporate bank account only. For correction/modification in details of already opened bank account, the user shall be required to contact the concerned bank/ branch.

Source: Ministry of Corporate Affairs.