Beneficial Interest Notification by Ministry of Company Affairs

In an important development, Ministry of Company Affairs notified the rules of Beneficial interest identification and reporting.

The duty of the reporting company

Every reporting company shall have to take the necessary steps to identify significant beneficial owners inside their companies and cause such individuals to make a declaration in Form No. BEN -1. The reporting companies should without discrimination make its member (other than an individual) holds not less than ten percent of its shares or voting rights. It should give notice to such members, and seek information in accordance with section 90, in Form No. BEN-4 to those who have the right to receive or participate in the dividend or any other distribution payable in a financial year.

Declaration of significant beneficial ownership under section 90

Every Individual who is a significant beneficial owner in a reporting company shall file a declaration in Form No. BEN-1 to the reporting company within ninety days from the date of commencement of the Companies (Significant Beneficial Owners) Amendment Rules, 2019 i.e. 08.02.2019. An individual who subsequently becomes a significant beneficial owner or there is some change that undergoes in his ownership shall have to file a declaration in Form No. BEN -1 within thirty days of acquiring such ownership to the reporting company.

Onkar Bhanarkar
Onkar is a Masters in Cyber Security, Ireland. He is a cybersecurity professional with extensive knowledge in Digital forensic investigations and Risk assessment. Onkar Bhanarkar is the Specialist Regtech analyst who contributes articles on money laundering enforcement actions in India, GDPR, Risk assessment, and Cyber Attacks.