Beneficial owner

Hi Guys.......

can anybody explain what is beneficial ownership? explain with example.

Replies (3)

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....

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details