SBO Query

[Pragya M]

Dear Members,

1. One of my client company has issued non convertible preference shares with no voting rights. Will the amount of such preference shares be included while calculating the SBO? 

In my view this will not be included in view of explanation VI to Rule 2 which says that : For the purposes of this clause, the instruments in the form of global depository receipts, compulsory convertible preference shares or compulsory convertible debentures shall be treated as 'shares'.

2. If a private discretionary trust has 2 trustees who are also members in the reporting entity. for eg: abc trust is the shareholder of 10% shares in XYZ ltd. with 2 trustees A and B, also A and B directly hold shares in XYZ Ltd. say 7% and 6%, then how will the indirect holding % be calculated in this case to decide the SBO.

Thanks and regards,

Pragya Mansukhani

9811275282

[Shalini Agarwal]

Please confirm that if in the reporting Company the Body corporate and HUF are holding less than 10 percent shares then do we need to further check the layers for the purpose of determining SBO.

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Regards,

Shalini Agarwal

Company Secretary