12 October 2023
Hi, Please tell me: A Ltd is the holding company and B ltd is subsidiary company A ltd is holding 90% shares in B ltd. B ltd has no members who have more than 10%. But A ltd, who is the holding company of B ltd has 3 members who has shares more than 10%.
Is there a need to file ben-2 with respect to below explanation as per section 90 CA, 2013?
*Non-Applicability The above rules shall not apply to such shares of the reporting entity as held by the following entities: Holding company of the reporting entity. However, the details of the holding company shall be reported in Form No. BEN-2*
Explanation III - For the purpose of this clause, an individual shall be considered to hold a right or entitlement indirectly in the reporting company, if he satisfies any of the following criteria, in respect of a member of the reporting company, namely: -
(i) where the member of the reporting company is a body corporate (whether incorporated or registered in India or abroad), other than a limited liability partnership, and the individual,
(a) holds majority stake in that member; or
(b) holds majority stake in the ultimate holding company (whether incorporated or registered in India or abroad) of that member;
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