Decide whether S will fall under the definition of Significant Beneficial Owner with respect to A Ltd. in the following circumstances: (i) S holds directly 10% of equity in A Ltd. and he holds 55% of equity in H Ltd. whi

In terms of Section 90 of the Companies Act 2013 read with Rule 2(1)(h) of the Companies (Significant Beneficial Owners) Rules, 2018, an SBO is an individual who either singly or jointly holds, indirectly or along with other direct holdings, not less than 10% of shares or 10% of voting rights or 10% of total distributable dividends in the Indian company or has been vested with the right of exercising significant influence or control, while also indirectly holding any one of the three rights mentioned above. S holds directly 10% of equity in A Ltd and he holds 55% of equity in H Ltd which holds 1% equity in A Ltd: He is a Significant Beneficial Owner since he holds 11% totally through indirect and direct holdings. S holds 8% of equity while Mr M holds 7% of equity in A Ltd and they are deemed to act together: S and M are not Significant Beneficial Owners as there is no indirect holding and their acting together is irrelevant. S holds 8% of equity in A Ltd directly. Mr S is also the Karta of a HUF that holds 7% of equity in A Ltd: He is a Significant Beneficial Owner since he holds total 15% equity through indirect and direct holdings. S holds 8% of equity in A Ltd directly. Mr S is also the trustee of a discretionary trust that holds 3% equity in A Ltd: He is a Significant Beneficial Owner since he holds total 11% equity in A Ltd through indirect and direct holdings. Holding by way of being a trustee of a discretionary trust is considered to be indirect holding.