Sen holds 8% shares in Z Ltd. B Ltd. holds 5% shares in Z Ltd. Sen holds 60% shares in B Ltd. Whether Sen will be considered as significant beneficiary owner under the Companies Act, 2013?

According to Companies (Significant Beneficial Owners) Amendment Rules, 2019, significant beneficial owner in relation to a reporting company means an individual referred to in sub-section (1) of Section 90, who acting alone or together, or through one or more persons or trust, possesses one or more of the following rights or entitlements in such reporting company, namely: holds indirectly, or together with any direct holdings, not less than ten per cent of the shares; holds indirectly, or together with any direct holdings, not less than ten percent of the voting rights in the shares; has right to receive or participate in not less than ten per cent. of the total distributable dividend, or any other distribution, in a financial year through indirect holdings alone, or together with any direct holdings; has right to exercise, or actually exercises, significant influence or control, in any manner other than through direct holdings alone. Sen holds 60% shares in B Ltd. As indirect holding of Sen is 5% (through B Ltd. in Z Ltd.) and Direct Holding of 8% (in Z Ltd.). Therefore, total holding (indirect with direct holding (5+8) i.e. 13%. Condition of indirect together with direct holding 10% also complied. Conclusion: Sen meets all the conditions to become Significant Beneficiary Owner. Therefore, Sen shall be considered as Significant Beneficiary Owner.