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Sec 20 (1) serving of document to Co "where securities are held with a depository, the records of the beneficial ownership may b served by such depository on the Co by means of electronic or other mode" whts the meaning of beneficiary, depository, wht kind of securities ? please someone explain me this para with an example
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Best Answer
A "beneficiary" is a person who has the right to receive the benefits of ownership of securities, such as dividends, interest, or voting rights. The beneficial owner of securities is the person who has a beneficial interest in the securities, even though the securities may be held in the name of a depository or other intermediary. A "depository" is an organization that holds securities on behalf of investors and maintains records of ownership. In India, the two main depositories are the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL). "Securities" refer to financial instruments such as shares, bonds, debentures, and mutual fund units, which are traded in the securities market. The SEBI regulation allows a depository to serve records of beneficial ownership to a company by electronic or other means. This means that the depository can provide the company with information about who the beneficial owners of the securities are, even if the securities are held in the name of the depository or another intermediary. For example, if Mr. A holds shares of XYZ Ltd. through NSDL, NSDL is the registered owner of the shares, and Mr. A is the beneficial owner. If XYZ Ltd. needs to send a notice to its shareholders, it can request NSDL to provide the records of beneficial ownership of its shares. NSDL can then provide the company with the required information about the beneficial owners of the shares, including their names, addresses, and the number of shares held.
CA Suraj Lakhotia Admin
A "beneficiary" is a person who has the right to receive the benefits of ownership of securities, such as dividends, interest, or voting rights. The beneficial owner of securities is the person who has a beneficial interest in the securities, even though the securities may be held in the name of a depository or other intermediary. A "depository" is an organization that holds securities on behalf of investors and maintains records of ownership. In India, the two main depositories are the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL). "Securities" refer to financial instruments such as shares, bonds, debentures, and mutual fund units, which are traded in the securities market. The SEBI regulation allows a depository to serve records of beneficial ownership to a company by electronic or other means. This means that the depository can provide the company with information about who the beneficial owners of the securities are, even if the securities are held in the name of the depository or another intermediary. For example, if Mr. A holds shares of XYZ Ltd. through NSDL, NSDL is the registered owner of the shares, and Mr. A is the beneficial owner. If XYZ Ltd. needs to send a notice to its shareholders, it can request NSDL to provide the records of beneficial ownership of its shares. NSDL can then provide the company with the required information about the beneficial owners of the shares, including their names, addresses, and the number of shares held.
xyz Ltd started a Co with MrP, Q, during this time NSDL will also take some share ? there will b then 3 shareholders ? after some days MrE wants to subscribe share & xyz Ltd don't do any new issue MrE hv option to subscribe share from MrQ or MrP or NSDL ?
CA Suraj Lakhotia Admin
NSDL is just registered holder. It wont have ownership interest
yes but MrP MrQ everyone is supposed to keep share in NSDL ? or MrQ MrP will hav some shares with themselves & keep remaining shares with NSDL..when Co is incorp
CA Suraj Lakhotia Admin
All shares either with NSDL or CSDL. However some types of companies can keep shares in physical form. Here shares will be with shareholders
thank you soo much Sir it helped me understanding
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