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Applicability of BEN 2

15 July 2019

In the following situation please help in identifying SBO-
ABC Private limited has 5 shareholders A holding 2.03% shares B also 2.03% C (Foreigner individual) holding 26.27% D (Foreigner individual) holding 26.33% and PTE ltd(Foreign company) holding 43.34% shares in ;PTE ltd there are 3 shareholders A holding 34 % C 33% and D 33% ..
Kindly advice on the applicability of ben2 on the reporting company ABC Pvt.

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3 Replies

cmacs sathya (31 Points)
Replied 15 July 2019

there is no SBO , Since there is no majority stake in pte Ltd ie not holding more than 50 percent of shares

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Shaik Muhammad Irshad (14 Points)
Replied 15 July 2019

Is indirect holding mandatory? as in the bare act it is given that HOLDS INDIRECTLY OR TOGETHER WITH DIRECT HOLDING NOT LESS THAN 10% OF THE SHARES. In the above sentence the word TOGETHER mandates INDIRECT holding of some percentage?

cmacs sathya (31 Points)
Replied 15 July 2019

here in above situation, A,B,C,D have direct holding. in pte limited, A,C,D have indirect holding but does not satisfy the condition majority stake. as there is no indirect holding, the question of sbo does not arise.