Section 35B: Details of Those Who Control or Receive Financial Benefits

1) The operating domestic or foreign person shall keep up-to-date the details of the natural persons who control such legal arrangement, the persons or classes of persons who derive high economic benefits from such legal arrangement, or the persons who provide financial, accounting, tax or investment management and agency related services to such legal arrangement, and shall also forward such details to the relevant regulatory body, if any, in a consolidated form.

2) The natural person who has carried out the legal management pursuant to sub-section (1) or who has actual control over such legal management shall also disclose the details regarding becoming a client in the referring institution.

3) If the details change pursuant to this section, the legal person shall immediately inform the relevant regulatory body.

4) The regulatory body can impose a fine of up to one lakh rupees on the legal management or any person who does not provide details according to this section, gives false information, or does not provide information to the indicting institution.

5) The legal system in operation at the time of commencement of this section shall submit the details pursuant to this section to the regulatory body within one year from the date of commencement of this section.

6) The record pursuant to sub-section (1) shall be preserved for at least five years from the date on which such person ceases to be a member of the legal management.