The Companies (Significant Beneficial Owners) Rules, 2018 is a framework established for identifying persons holding beneficial ownership of a company i.e. persons holding a significant stake in the company either directly or indirectly, to ensure transparency and prevent fraudulent activities.
A company is required to report information pertaining to its Significant Beneficial Owners ("SBOs") in Form BEN-2. The amended rules have revised the existing format of Form BEN-2 and replaced it with a newer form which highlights the importance of thorough documentation and requires digital signatures from authorised personnel. This form ensures that the information provided is accurate and verified by a professional such as a chartered accountant, cost accountant or company secretary.
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