MEANING OF WORD -Hindu Undivided Family (HUF) (through karta)_ For BEN-1

[Khyati Shah]

Respected Members,

In Exp. III rule 2 of Companies (Significant Beneficial Owners) Amendment Rules, 2019 dt.08.02.2019 it is written that - For the purpose of this clause, an individual shall be considered to hold a right or entitlement indirectly in the reporting company, if he satisfies any of the following criteria, in respect of a member of the reporting company, namely: 

(ii) where the member of the reporting company is a Hindu Undivided Family (HUF) (through karta), and the individual is the karta of the HUF; 

My query is, in my register of members simply name of share holder is written as XYZ HUF. Fund is pulled from HUF's Account only. It is no where written that HUF is holding shares through karta. Then in such case BEN-1 and BEN 2 will applicable or not?

It will be great if someone can provide guidance on above.

Regards,

CS Khyati Shah

[shaffy setia]

YES IT IS APPLICABLE.

But if you had filed MGT-6 than you are not required to file BEN-2

Thanks and Regards

ACS Shaffy Mehta

(E) sha...@caalokaggarwal.com

(M): 9560130844

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[premnarayan tripathi]

Dear Friend,

 

It is immaterial whether it’s written as HUF is holding through Karta. In all situations, entire shares held by HUF will be clubbed with Karta’s holding.

 

BEN 1 and BEN 2 will come into picture if aggregate holding including through HUF crosses 10% stake.

 

Thanks & Regards,

 

CS. Premnarayan Tripathi

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[Khyati Shah]

Ok. thank you so much.

[Vishwanath Pai]

Respected Madam

Wanted to circle back on the the point mentioned by you that - If MGT-6 is filed then BEN-2 is not required to be filed.

Can you please clarify on the above as I did not find anything in the SBO rules / amendment,which states it 

In our client's case, the Director held about 30% of equity shares on 31/03/19 and in May 2019 transferred 0.16% of his shareholding  to his HUF at Fair market value  (HUF had previously Nil holding).  The MGT-4 and MGT-5 were received within 30 days of transfer  of  in June 2019 and MGT-6 was filed  by company in 1st week of July 2019 (within 30 days of receipt).  

In such a case would the Director / Karta (SBO) be required to report in BEN-1 to the company and the Company to report again in BEN-2

Thanking you

With Best Regards

Vishwanath

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