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Sbo rules clarification

Gargi Ranade (CS) (410 Points)

29 July 2019

Dear All,

We are Private Limited Company , and 100% subsidiary of the Japanese Listed Company,( 99.99% shares are on the name of the parent company and 2 shares are held by another subsidiary of the Japanese Company ) in our listed Company no individual as well as body corporates holds majority stake, further our parent company could not identify any individual who indirectly holds 10% or more stake in the Company.

In such case how should we comply with the SBO rules , what declaration I should take from Parent company .

Can anybody please share points to be noted? Or can anybody share the draft to be taken from the parent Company.

Regards,

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2 Replies

Nithin Joseph (CA in Practice) (161 Points)
Replied 29 July 2019

Notice can be send in Ben -4 to the parent company. Since Ben -1 only applies , when you have sbo , it's suggested to get a letter from parent company stating there are no sbo's

Jatin Bajaj (CS) (2928 Points)
Replied 29 July 2019

The Company shall send BEN- 4 to the parent Company and shall also obtain the letter from the parent Company stating that there are no SBO in the ultimate holding Company as no shareholder is holding more than majority of shares in the holding Company and no individual is indirectly holding more than 10 percent stake in the ultimate holding Company. Take the note of the receipt of this letter and Company is under no obligation to file BEN-2 to the registrar of Companies.