Why was the concept of Beneficial Ownership introduced in the Companies Act?

To encourage and increase transparency (the ownership and control structure) of legal persons and arrangements through disclosure of who ultimately owns, controls, exercises substantial interest in, or receives substantial economic benefit from a corporate.

Further, the concept of Beneficial Ownership is aimed at curbing the use of corporate bodies for money laundering, bribery and corruption, insider dealing, tax fraud, terrorism financing, and other illicit activities.

Disclosure of Beneficial Ownership, therefore, makes legal entities less
attractive for criminals.