Beneficial ownership rules for firms tweaked

NEW DELHI: The government has amended the significant beneficial ownership rules for companies, putting in place a more clear regulatory framework that would also help identify entities that might be controlled from outside the country, according to an official.

The corporate affairs ministry has issued amendments to the significant beneficial owners rules under the Companies Act, 2013.

Apart from providing more clear definitions for determining whether an individual or an entity has significant beneficial ownership, corporates will be required to provide the details in a more elaborate manner to the ministry.

The official said the amended rules are clear, precise and "all forms of control" that could be exercised in the affairs of a company are being captured."The whole principle of proportional calculation has been done away with. It is very clear on how significant beneficial owners would be identified in various circumstances... The rules seek to lift the corporate veil," the official added.