Ministry of Corporate Affairs (MCA) via its notification of 8th December, 2020 has relaxed both the requirements and timelines for the online self-assessment proficiency test that Independent directors must take to remain in Databank of Independent Directors maintained by Indian Institute of Corporate Affairs, under the amended Companies (Appointment and Qualification of Directors) Rules, 2014.

Now an Independent Director is required to take online efficiency test within 2 years from the date of inclusion of name in Databank. Further, Passing criteria has also been reduced to 50%. Exemption criteria for certain Directors and Key Managerail Personnel have also been extended. Work experience of three years as Directors and Key Managerail Personnel will be enough to get exemption.

Click on the icon to read the detailed explanation of that notification