Aim: Monitoring of adherence of FEMA (Non-debt instruments) Rules, 2019 by MCA

Result/Impact: 1. MCA has specified requirement of availing approval of Ministry of Home Affairs for any person who belong to country which shares land border with India and wants to get:
a. appointed as director in Indian Company
b. Director Identification Number in India
2. Approval to be attached with consent for appointment as director / DIR-3, as the case may be
3. Relevant disclosures statements have been added in DIR-2 & DIR-3 to identify whether the proposed director is required to obtain the security clearance from the Ministry of Home Affairs, Government of India

Source: The Companies (Appointments & Qualifications of Directors) Amendment Rules, 2022 dated June 1, 2022