Purpose:

To ensure transparency and accountability in relation to the declaration of beneficial ownership made by the registered owner of a share.

Timeline:

The notification of the receipt of declaration must be made to the concerned company within 30 days of receiving the declaration under Section 89.

Penalty:

Failure to comply with this section can result in a penalty of up to INR 1 lakh.

Form:

The notification must be made in writing and in the Form MGT -6.

Reporting Authority:

The notification must be made to the concerned company.

Other:

Section 89 of the Companies Act, 2013 deals with the declaration of beneficial ownership by the registered owner of a share. The purpose of this section is to identify the actual owner of the share and prevent the misuse of shares for illegal activities.