‘Significant beneficial owner’ means an individual referred to in sub-section (1) of section 90 (holding ultimate beneficial interest of not less than ten per cent.) read with sub-section  of section 89 of Companies Act, 2013, but whose name is not entered in the register of members of a company as the holder of such shares, and the term ‘significant beneficial ownership’ shall be construed accordingly.
Explanation l. – For the purpose of this clause, the significant beneficial ownership, in case of persons other than individuals or natural persons, shall be determined as under-
|In case where the member is||Significant Beneficial Owner||% of Holding in the Share Capital of the Company.|
|Partnership firm||Natural person||10%|
|Where no natural person identified under the above cases||Senior managing
Explanation II – It is hereby clarified that instruments in the form of global depository receipts, compulsorily convertible preference shares or compulsorily convertible debentures shall be treated as ‘shares’ the purpose of this clause.
Every significant beneficial owner shall file a declaration in Form No. BEN-I to the company in which he holds the significant beneficial ownership within thirty days in case of any change in his significant beneficial ownership.
Where any declaration is received by the company, it shall file a return in Form No. BEN-2 with the Registrar in respect of such declaration, within a period of thirty days from the date of receipt of declaration by it, along with the fees as prescribed in companies (Registration offices and fees) Rules, 2014.
These rules are not made applicable to the holding of shares of companies/body corporates, in case of pooled investment vehicles/ investment funds such as Mutual Funds, Alternative Investment Funds (AIFs), Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (lnvITs) regulated under SEBI Act.
**NOTE: Circular issued by SEBI regarding Disclosure of significant beneficial ownership in the shareholding pattern.
For details kindly visit the link – Modification of circular dated December 7, 2018 on ‘Disclosure of significant beneficial ownership in the shareholding pattern’