Beneficial owner

Beneficial ownership relates to the state of having effective ownership over a property or a security without actually owning the title to it.

eg. 1)speculative / arbitrage transactions i.e simultaneous purchase and sale of stocks.

2)lease transactions - a lessee is a beneficial owner of the property though the title / ownership lies with lessor.

3) Holding a voter proxy

thanks rupesh joshi ji.

Dear Puneet,

Just want to add more on this -

Beneficial owner - This thing distuinguishes between the "OWNER" & the "REAL OWNER"

Like we hold securities in Demat A/c with Depositors, Now in the books of Co. I mean Share Holder's register the shares are recorded in the name of Depositors(i;e NSDL & CDSL), in this case Investor is called as Beneficial Owner...Since Securities are held by Depositors(the owners) but in our benefits(i;e the Real Owner)

Another example would be of Trust that is a Trust is the owner of properties under it but the beneficial owners or the real owner would remain the beneficiaries of the trust....