As per notification dated 8th February, 2019, Section 469 (1) and (2) of the Companies Act, 2013 read with section 90 of the Companies Act, 2013, Central Government amends the Companies (Significant Beneficial Owners) Rules, 2018, as Companies (Significant Beneficial Owners) Amendment Rules, 2019 effective from 8th February, 2019.
Some of the Key points are listed below-
- It shall be duty of the reporting company to find out or identify individual who is a Significant Beneficial Owner (SBO), who shall file a Declaration in Form No. BEN-1.
- Every reporting company shall in all cases where its member (other than an individual), holds at least 10% of its shares, voting rights, or right to receive or participate in the dividend or any other distribution payable in a financial year, give notice to such member, seeking information in Form No. BEN-4.
- Every individual who is a SBO in a Reporting Company, shall file a declaration in Form No. BEN-1 to the reporting company within 90 days from such commencement. Every individual, who subsequently becomes a SBO or where his significant beneficial ownership undergoes any change shall file a Declaration in Form No. BEN-1 to the reporting company, within 30 days of acquiring such significant beneficial ownership or any change therein.
- Upon receipt of declaration, the Reporting Company shall file a Return in Form No. BEN-2 within a period of 30 days from the date of receipt of such declaration along with the fees.
- Reporting Company shall make an Application to the Tribunal, where any person fails to give the information required by the notice in Form No. BEN-4, where the information given is not satisfactory then the shares in question be subject to restrictions.
- These rules shall not be made applicable to the extent the share of the reporting company is held by certain categories as prescribed.
Content of this notification is linked below:-