Foreign nationals from border sharing countries need security clearance from Home Ministry for obtaining DIN
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- Last Updated on 3 June, 2022
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Notification no. G.S.R. 410(E), Dated: 01.06.2022
The Government has notified the Companies (Appointment and Qualification of Directors) Amendment Rules, 2022. Amendment has been made to rule 8. Now security clearance from Home Ministry would be required if a person seeking an appointment as a director or applying for Director Identification Number (DIN) is a national of a country that shares a land border with India. The necessary security clearance shall be attached along with the consent or application for DIN.
As per Rule 8 of the Companies (Appointment and Qualification of Directors) Rules, 2014 every person who has been appointed to hold the office of a director shall on or before the appointment furnish to the company a consent in writing to act as such in Form DIR-2.
Now, the person seeking appointment as a director who is a national of a country that shares a land border with India shall have to obtain necessary security clearance from the Ministry of Home Affairs, Government of India shall attach the same along with the consent. The Form DIR -2 has also been suitably amended to include a disclosure from the applicant that he/she is not required to obtain the security clearance from the Ministry of Home Affairs, Government of India before seeking an appointment as director.
A further amendment has also been made to Rule 10 which relates to the allotment of the DIN. Rule -10 prescribes that on the generation of the that on the submission of the Form DIR-3 on the portal and payment of the requisite amount of fees through online mode an application number shall be generated by the system automatically.
Now, a proviso has been inserted after Rule 10(1) providing that no application number shall be generated in case of the person applying for Director Identification Number is a national of a country which shares land border with India, unless necessary security clearance from the Ministry of Home Affairs, Government of India has been attached alongwith application for Director Identification Number.
Accordingly, form DIR -3 has also been amended to include a declaration from the applicant that he/she is not required to obtain the security clearance from the Ministry of Home Affairs, Government of India under sub-rule (1) of rule 10 before applying for a director identification number. List of countries sharing a land border with India are – China, Pakistan, Bhutan, Myanmar, Afghanistan, Nepal, and Bangladesh.
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How to get MHA security clearance for foreign national. PLease explain thorougly.