PML Act 2002: Special Courts, Role...
The legal denotation of the term Money Laundering is to process illegally obtained money throug...
The disclosure requirement for significant beneficial ownership has been amended by the ministry of corporate affairs. The reporting companies need to disclose the details such as name, PAN and nationality of the beneficial owner.
Every individual who possesses one or more of the following rights (whether acting alone or together or through one or more person or trusts) in such reporting company by holding directly or together with direct holding-
Direct holding refers to an entitlement where an individual shall be considered to hold a right in the reporting company, by satisfying any of the criteria-
Indirect holding refers to an entitlement where an individual shall be considered to hold (entitlement) directly in the reporting company by satisfying any of the criteria, in respect of the members of the reporting company. The member of the reporting can be-
An SBO In Case of Pooled Investment Will Be Individual Who is a General Partner/Investment Manager/Chief Executive Officer
Holding more than 50% of the equity share capital in the body corporate/orholding more than 50% of the voting rights in the body corporate or having the right to receive /or participate in more than 50% of the distributable dividend or any other distribution by the body corporate.
Taking into consideration the recent changes, most significant developments has been made according to which the individual as significant beneficial owner is now based on direct and indirect holding of right or entitlement in the reporting company. In order to bring transparency Section 90 was as per the Companies Act 2013 was introduced which deals in the disclosure of significant beneficial owner of a company and compliance thereof. Due to some ambiguities found in the in 2018 SBO Rules, the MCA has suspended the prescribed filings and meanwhile some changes have been introduced in section 90.
All listed entities shall be required to disclose all the information related to significant beneficial owners in the format prescribed at Annexure specified by the SEBI circular.
Note-Listed entities that are reporting company under Companies (Significant Beneficial owners) Rules 2018 is required to disclose details pertaining to significant beneficial owners in the specific format.
The details of beneficial ownership by the SBO shall be submitted to the company within the timeline of 90 days as granted by the MCA from the date of enforcement of the amendment of the SBO Rules.
Certain classes of Individuals are exempt from making disclosure under the SBO Rules-
However, in case no declaration is filed by the SBOs to the reporting company or where the information provided by the SBOs is deemed unsatisfactory by the reporting company, the reporting company is entitled to apply to the NCLT for imposing restrictions on the shares held by the SBOs.
The declaration is required to be filed in Form No. BEN-2 of beneficial interest received by the company, with the Registrar in respect of such declaration, within a period of 30 days from the date of receipt of declaration by it, by the company.
Every company is required to maintain a register in Form BEN-3 and it shall be open for inspection by any members of the company during business hours not less than 2 hours on payment of such fees not exceeding 50 Rs for each inspection.
SBO rules has been drastically changed with the intent to facilitate the implementation of the provision and with the aim to remove the practical difficulties faced by the stakeholders in complying with the requirements of the provisions. The revised Rules and forms came into existence to simplify ease the practical implementation of the Rules.