The Indian Ministry of Corporate Affairs has amended the country’s Companies (Significant Beneficial Owners) Rules 2018 that was first passed in June 2018.
Due to claims that the rules were unclear, the bill has now been amended.
Broader scope
The amended legislation defines a significant beneficial owner (SBO) as a person who owns at least 10 per cent of a company.
Resident and foreign owners are required to declare the nature of their interest in that company.
People who have the right to exercise significant control or influence over the company must also be declared.
Disclosure requirements
Every person who becomes an SBO or changes their SBO status must disclose the relevant information within 30 days and companies are obliged to report the changes to the official registrar.
Failure to disclose such changes can result in fines or, in serious cases, imprisonment for the SBO.
Categories: Trade Based Financial crimes News
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