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Company directors who have not authenticated themselves have written to the secretary to the Ministry of Corporate Affairs (MCA), seeking more time to complete the process. They said the MCA 21 site was not working and because of that they could not complete their know your customer (KYC) norms. The MCA is deactivating the registrations of 2 million directors because they did not update their KYCs. In 60 days, 1.2 million directors have completed their KYCs. The remaining will be disqualified unless they update their KYC and pay a penalty to the ministry. There were 3.2 million active director identification numbers (DINs) with the Registrar of Companies. The ministry is planning to track down each director who has not completed his or her KYC. Stating that the ministry will not extend the time to update KYC, sources said it was the directors’ fault and not the ministry’s. “If they have not done it, they deserve to pay a fine,” an official said, adding the system had the capacity to ha…

Economists feel the government measure to address the current account deficit and rupee depreciation may improve sentiment and were just the limited response that was needed, but some felt they suggest panic on the part of the government. The government on Friday announced a slew of measures to bring additional capital inflows of $8-10 billion to arrest rupee depreciation and address the underlying problem of high current account deficit. “We view the government’s guarded response as appropriate because India’s macro fundamentals are in a much better shape today than in 2013 – higher growth, stable inflation and fiscal commitment - and do not necessitate a knee-jerk reaction,” Sonal Varma of Nomura said in a research note. Upasna Bhardwaj, senior economist at Kotak Mahindra Bank, was not sure how much capital flow will come from these measures but agreed that no panic reaction was needed. “Though we need to be vigilant of rupee depreciation, there is no need to press the panic button a…

The rupee may retrace up to 3% of its lost ground by the end of the calendar year, helped by the five-pronged strategy that the government announced to prop up the free-falling local currency, market participants expect. A majority of the respondents in an ET snap poll predicted the local unit to see some signs of gains this week following the announcement. But that could be short-lived, as they expect the rupee to swing both sides in a wide range through the year amid continuing global uncertainties, and even hit a new low. A meltdown in the Turkish lira and Argentine peso is clouding the prospects of emerging market investment, with investors seeking safe-haven assets. Foreign investors pulled out more than ?49,000 crore since January from India’s equity and bond markets, even as the rupee lost about 11% to the dollar to be one of the worst performing emerging market currencies this year. Overseas Investors Wait for Details, The local currency hit a record low at 72.92 to the dollar …

The government has started the process of de-activating the identification numbers of nearly 2.1 million directors of companies as they failed to comply with KYC norms, according to a senior official. The Director Identification Numbers (DINs) -- a unique number allotted to individuals who are eligible to have directorship on the boards of registered companies -- are being de-activated. They will be re-activated after a fee payment of Rs 5,000 along with the requisite form and the individuals concerned might also face action. The latest move by the Corporate Affairs Ministry also comes at a time when the government has intensified the crack down on shell companies, which are suspected to be conduits for illicit fund flows. In June, the ministry decided to carry out KYC (Know Your Customer) process for all directors, including those who have been disqualified. The last date for complying with the new norms by way of submitting form 'DIR-3 KYC' without fee ended on September 15. …

Securities and Exchange Board of India (Sebi) has directed the NSE to keep four senior officials, served show-cause notices (SCN) in the co-location case, out of action. Sources said these four key managerial personnel (KMP) will have to remain out of the bourse’s “sensitive” and “confidential” matters until the probe is complete. The move is to ensure a fair trial in the colo case, which is nearing conclusion. “These KMP have also been directed to recuse themselves from key decisions of the NSE. Further, they have been told not to participate in any of the core activities,” said a regulatory official. Meanwhile, the NSE has filed another consent application with Sebi based on fresh SCNs served on July 4. Notices have also been served to about 20 individuals. These include Ravi Varanasi, the exchange’s chief of business development, and Suprabhat Lala, senior vice-president (regulatory and investor services cell). Sebi had, in March, returned the NSE’s previous consent application citin…

India’s antiprofiteering officials will look into complaints alleging that many consumer goods companies have not fully passed on a recent reduction in the goods and services tax on their products to consumers. According to the complaints, some makers of refrigerators, televisions, washing machines and water heaters haven’t reduced the prices of their products to reflect the cut in GST to 18% from 28%. However, white goods companies said the entire benefit has been passed on. “We have received many complaints... These will be looked into as per the process,” said a senior official with the National Anti-Profiteering Authority, the government entity that ensures traders don’t realise unfair gains by charging high prices from consumers in the name of GST. The GST Council, which administers the tax, cut the rate for a host of white goods to 18% from 28% on July 21. Companies were directed to affix stickers with the new prices on old stock to ensure that the tax cuts are passed on to consu…