Bidders for govt’s stake in CPSEs to submit beneficial ownership details for security clearance

Foreign and Indian bidders interested in buying government stake in state-owned firms such as BPCL, Air India and BEML, will have to disclose details of the ultimate beneficial owners to get a security clearance. The Department of Investment and Public Asset Management (DIPAM) – the government agency managing the stake sale – has issued a proforma of the application for security clearance of the acquirers.

According to the proforma, any interest of more than 10 per cent in the bidding entity would require disclosures of parentage and beneficial ownership to get a security clearance.

In case the acquirer is a sole bidder, it has to share with the government details like nationality, address, parentage, Unique ID number of the country of residence and passport number, of its directors and partners.