SEBI extends timeline for Disclosure of significant beneficial ownership

The Securities and Exchange Board of India (‘SEBI’) in the interest of transparency to the investors in the securities market mandated that, listed entities shall disclose details pertaining to Significant Beneficial owners in the format prescribed along with the shareholding Pattern filed by all listed entities vide its circular dated 07th December 2018 from quarter ending 30 March 2019.

SEBI had issued the above circular based on the Companies (Significant Beneficial Owners) Rules, 2018 [‘SBO Rules 2018’]. However, the Ministry of Corporate Affairs subsequently issued an amendment to the SBO Rules 2018 in 2019, which was notified on February 8, 2019 [‘SBO Rule 2019’]. Therefore SEBI has now amended its December 2018 circular in line with the SBO Rules 2019 vide modification circular dated 12 March 2019.

Highlights of the SEBI 12 March 2019 circular is as under:

1. The disclosure requirement will apply only to those listed entities that are reporting companies as per Companies (Significant Beneficial Owners) Rules, as amended
2. The submissions under this circular shall be in line with the requirements specified under Companies (Significant Beneficial Owners) Rules, as amended
3. The revised format for disclosure in Table V shall be applicable
4. The timelines for complying with the disclosure requirement is quarter ended 30th June 2019 onwards.

Click here to read SEBI Circular