This document discusses reporting requirements for substantial beneficial owners (SBOs) of Indian companies. It outlines a 3-step process for SBO reporting:
1. SBOs submit a declaration of their shareholding in Form BEN-1 to the reporting company.
2. The reporting company files the declarations received in Form BEN-2 with the Ministry of Corporate Affairs.
3. The reporting company maintains a register of SBOs in Form BEN-3.
It also discusses complications that can arise with complex holding structures and non-cooperative SBOs.
5. Shares: holds not less than 10%
Voting Rights: holds not less than 10%
Dividend/ Distributions: participation of not
less than 10%
Significant influence / Control
6.
7. Step III
Reporting Company
maintains Register
of SBO in Form
BEN-3
Step I
SBO submits
declaration in
Form BEN-1
Step II
Reporting Company
files Form BEN-2
8. BRANCH
OFFICE
Act as buying/selling
agent of Parent
Company
SEBI
Registered
Investment
Vehicles
(MF, AIF, REIT,
InVIT)
8
IEPF
Fund Managing
Authority
CENTRAL /
STATE GOVT.
- Govt. / any local
authority
-Controlled fully or
partly by any Govt.
RBI
Regulated
Investment
Vehicles
(IRDA, Pension
Fund RDA)
HOLDING
REPORTING
COMPANY
Were declaration
in Form BEN 2 is
disclosed in such
Holding Reporting
Company
13. Notice in Form BEN-4
If the declaration received;
Company to File Form BEN-2
If the declaration is not
received;
Company to file an
application with the Tribunal
Non Co-operative SBO
14. Other
restrictions
Any other restriction on
all or any of the rights
attached with the shares
Voting
Suspension of voting
rights
Dividend
Suspension of the right
to receive dividend or
any other distribution
On the transfer of interest
attached to the Shares
Transfer