Published Tue, 21 Jan 2020 | Updated Mon, 15 Mar 2021
Ministry of Corporate Affairs (MCA) vide its Notification dated June 13, 2018 had introduced the Companies (Significant Beneficial Owners) Rules, 2018 (hereinafter to be referred as ‘SBO Rules’). The said Rules were amended vide MCA Notification dated February 8, 2019.
In terms of the aforesaid Rules, every Significant Beneficial Owner (SBO) as defined in Rule 2(1)(h) of the SBO Rules is required to give a declaration in Form BEN-1 to the reporting company and the Company shall file BEN-2 with the Registrar of Companies by September 30, 2019.
Every reporting company shall, in all cases where its member (other than an individual), holds not less than ten per cent of its shares/ voting rights/ right to receive or participate in the dividend or any other distribution payable in a financial year and where no such notice in Form BEN-1 has been received by a Reporting Company, give a notice seeking information related to beneficial ownership in Form BEN-4.
Further, every individual, who subsequently becomes a significant beneficial owner, or where his significant beneficial ownership undergoes any change, shall file a declaration in Form No. BEN-1 to the reporting company, within thirty days of acquiring such significant beneficial ownership or any change therein. Upon receipt of such a declaration, the reporting company shall file a return in Form No. BEN-2 with the Registrar in respect of such declaration, within a period of thirty days from the date of receipt of such declaration by it.
The reporting company is also required to maintain a register of significant beneficial owner in Form BEN-3.