From India: Declaration of Significant Beneficial Owner - New Regulations
In an attempt to address the global issue of money laundering, bribery and corruption, insider dealings, tax fraud, terrorist financing and other illegal activities, the Ministry of Corporate Affairs (MCA), based on the recommendation of the Financial Action Task Force, an intergovernmental organization, has notified the provisions of Disclosure of Significant Beneficial Ownership of Companies.
Every individual who, either by himself or with others (including a trust and persons resident outside India), directly or indirectly, holds the beneficial interest of at least 10% in shares of the company or has the right to exercise significance influence or control over a company, shall make a declaration to that company specifying the nature of his beneficial interest (Significant Beneficial Owner (SBO)). Every significant beneficial owner shall file a declaration in Form No. BEN-1 to the company in which he holds the significant beneficial ownership on the date of commencement of these rules within 90 days from the date of commencement of the rules (i.e., September 11, 2018) and within 30 days in case of any change/acquisition of SBO.
The primary obligation of disclosure of significant beneficial interest has been cast on all natural persons who hold such interest directly and indirectly, regardless of their domicile or residency status. The company may give notice for seeking information on whom the company knows or has reasonable cause to believe to be a SBO of the company or to be having knowledge of the identity of a SBO or another person likely to have such knowledge or to have been a SBO of the company at any time during the three years immediately preceding the date on which the notice is issued.
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