MCA tightens scrutiny of beneficial ownership norms for foreign-owned companies
The Ministry of Corporate Affairs has tightened its scrutiny of beneficial ownership standards for companies owned and controlled by foreign investors, which legal experts said could have consequences for compliance practices.
The Registrar of Companies (RoC) recently issued notices to several foreign owned and controlled companies, including LinkedIn, for alleged violation of beneficial ownership disclosure norms, said two people with knowledge of the matter.
The companies that received the notices had all declared in their annual filings that they did not have any significant beneficial owner (SBO). Most of the notices were issued by RoCs in Haryana, Karnataka and Mumbai. Some of the entities under scrutiny are fully owned by foreign private equity funds, the people said.
