Closer watch on ownership transfer in cos

August 13th, 2009

The Economic Times

NEW DELHI: Non-disclosure of transfer of beneficial ownership by promoters has caught the eye of policymakers. While noose has already tightened on listed companies after the Satyam episode by market regulator Sebi, the focus has now turned to tightening the disclosure for non-listed companies.

The issue has been deliberated within the finance ministry which is set to take it up with Corporate Affairs. At present, a declaration under Section 187 C of the Companies Act has to be filed with the registrar of companies if beneficial ownership in a company is transferred. Non-compliance of the provision attracts a fine of Rs 500-1000 per day till default continues.

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