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TMI BlogCompanies (Significant Beneficial Owners) Amendment Rules, 2019X X X X Extracts X X X X X X X X Extracts X X X X ..... e Official Gazette. 2. In the Companies (Significant Beneficial Owners) Rules, 2018 (hereinafter referred to as the principal rules), in rule 2, in sub-rule (1), for clauses (b) to (e), the following clauses shall be substituted, namely:- '(b) "control" means control as defined in clause (27) of section 2 of the Act; (c) "form" means the form specified in Annexure to these rules; (d) "majority stake" means;- (i) holding more than one-half of the equity share capital in the body corporate; or (ii) holding more than one-half of the voting rights in the body corporate; or (iii) having the right to receive or participate in more than one-half of the distributable dividend or any other distribution by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indirectly under sub-clauses (i), (ii) or (iii), he shall not be considered to be a significant beneficial owner. Explanation Il. - For the purpose of this clause, an individual shall be considered to hold a right or entitlement directly in the reporting company, if he satisfies any of the following criteria, namely. (i) the shares in the reporting company representing such right or entitlement are held in the name of the individual; (ii) the individual holds or acquires a beneficial interest in the share of the reporting company under sub-section (2) of section 89, and has made a declaration in this regard to the reporting company. Explanation Ill. - For the purpose of this clause, an individual shall be considered to hold a right or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Financial Action Task Force on Money Laundering and the regulator of the securities market in such member State is a member of the International Organization of Securities Commissions, and the individual in relation to the pooled investment vehicle, (A) is a general partner; or (B) is an investment manager; or (C) is a Chief Executive Officer where the investment manager of such pooled vehicle is a body corporate or a partnership entity. Explanation IV. Where the member of a reporting company is, (i) a pooled investment vehicle; or (ii) an entity controlled by the pooled investment vehicle, based in a jurisdiction which does not fulfil the requirements referred to in clause (v) of Explanation III, the provisions of clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the generality of the steps stated in sub-rule (1), every reporting company shall in all cases where its member (other than an individual), holds not less than ten per cent. of its;- (a) shares, or (b) voting rights, or (c) right to receive or participate in the dividend or any other distribution payable in a financial year, give notice to such member, seeking information in accordance with sub-section (5) of section 90, in Form No. BEN-4. 3. Declaration of significant beneficial ownership under section 90.- (1) On the date of commencement of the Companies (Significant Beneficial Owners) Amendment Rules, 2019, every individual who is a significant beneficial owner in a reporting company, shall file a declaration in Form No. BEN-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son fails to give the information required by the notice in Form No. BEN-4, within the time specified therein; or (ii) where the information given is not satisfactory, in accordance with sub-section (7) of section 90, for order directing that the shares in question be subject to restrictions, including - (a) restrictions on the transfer of interest attached to the shares in question; (b) suspension of the right to receive dividend or any other distribution in relation to the shares in question; (c) suspension of voting rights in relation to the shares in question; (d) any other restriction on all or any of the rights attached with the shares in question. 8. Non-Applicability.-These rules shall not be made applicable to the extent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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