https://www.taxtmi.com/caselaws?id=109526 Dematerialised shares under a loan arrangement are not treated as pledged merely because they are delivered to the lender; a valid pledge requires compliance with the depository procedure, including creation of a pledge entry. Where the documentation and authority given to the lender show an outright transfer and the securities are reflected in the lender's name as beneficial owner, title may pass to the lender. Purchasers who acquire the securities without notice of any defect may be protected as bona fide purchasers for value without notice, and estoppel may prevent the true owner from disputing their title. en-us Tue, 11 Mar 2003 00:00:00 +0530 Wed, 15 Dec 2021 10:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109526 Dematerialised shares under a loan arrangement are not treated as pledged merely because they are delivered to the lender; a valid pledge requires compliance with the depository procedure, including creation of a pledge entry. Where the documentation and authority given to the lender show an outright transfer and the securities are reflected in the lender's name as beneficial owner, title may pass to the lender. Purchasers who acquire the securities without notice of any defect may be protected as bona fide purchasers for value without notice, and estoppel may prevent the true owner from disputing their title. Case-Laws Indian Laws Tue, 11 Mar 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109526