The Ministry of Corporate Affairs (MCA) has mandated that all public limited companies must now maintain comprehensive records of training programs attended by their directors, effective from March 1, 2026. This new compliance requirement, notified under amendments to the Companies (Appointment and Qualification of Directors) Rules, 2014, aims to strengthen boardroom effectiveness by promoting continuous professional development, corporate governance awareness, and regulatory competence among directors. The initiative underscores the government’s intent to ensure that directors, particularly independent and non-executive members, remain well-informed and accountable.

As per the directive, companies are required to organize or facilitate at least one governance or compliance-related training session each financial year for their board members. Topics must include corporate laws, ESG compliance, insider trading regulations, risk management, cyber-security, and business ethics. Details such as training content, duration, faculty, attendance records, and feedback summaries must be documented and preserved for a minimum of eight years. These records will need to be made available for inspection by statutory auditors, the Registrar of Companies (RoC), and SEBI during compliance reviews or governance assessments.Additionally, public companies must disclose director training summaries in their annual corporate governance reports filed with stock exchanges and include a statement in the board’s annual report certifying compliance. Non-adherence to the training requirement or failure to maintain proper documentation may attract penalties under Section 166 and Section 134 of the Companies Act, 2013, with the possibility of reputational damage in investor evaluations. Experts consider this a progressive step toward board capacity building and transparency, ensuring that directors are equipped to navigate complex regulatory and business challenges in India’s evolving corporate landscape.