Beneficial interest in shares ‑ Scope of the section relating to declaration by persons not holding beneficial interest in share ‑Declaration of Beneficial Interests in Shares Rules, 1975 framed thereunder
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Beneficial interest in shares: pledgee files Form I for transferred legal title; beneficial owner files Form II declaring ownership. Clarifies that when pledged shares are transferred to a bank's name the bank files Form I to reflect legal title, while the customer retains the beneficial interest and must file Form II as the beneficial owner; banks should not claim beneficial interest for pledgee purposes for requiring customers to certify contrary statements.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Beneficial interest in shares: pledgee files Form I for transferred legal title; beneficial owner files Form II declaring ownership.
Clarifies that when pledged shares are transferred to a bank's name the bank files Form I to reflect legal title, while the customer retains the beneficial interest and must file Form II as the beneficial owner; banks should not claim beneficial interest for pledgee purposes for requiring customers to certify contrary statements.
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