Benifical ownership

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2013 IN SHARE HOLDING PATTERN HOW CAN I FOUND,THAT SHARE HOLDER IS BENEFICIAL SHARE HOLDER OR NON BENEFICIAL SHARE HOLDER,
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PLEASE TELL ME THE ACTUAL PROCEDURE FOR FINDING BENEFICIAL SHARE HOLDER OF LISTED COMPANY OR UNLISTED COMPANY.

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2013 please ans my query question urgently.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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18 July 2024 Identifying beneficial shareholders of a listed or unlisted company involves understanding who ultimately enjoys the economic benefits of owning shares, even if the shares are held in the name of another entity or person. Here’s how you can determine beneficial shareholders:

### Beneficial Shareholder in Listed Companies:

1. **Demat Accounts and Depositories:**
- In the case of listed companies, shares are typically held in electronic form (dematerialized) through depositories like NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited).
- The depositories maintain records of beneficial owners (BO) who hold shares through Depository Participants (DPs).

2. **Shareholding Pattern Disclosures:**
- Listed companies are required to disclose their shareholding pattern periodically (quarterly or annually) to the stock exchanges and on their website.
- This disclosure includes details such as the percentage of shares held by promoters, institutional investors, public shareholders, and others.

3. **Identification of Beneficial Owners:**
- Beneficial owners are identified based on the ultimate economic interest in the shares. This may include individuals, entities, or funds that ultimately benefit from the ownership of shares, even if the shares are held in the name of nominees or intermediaries.

4. **Proxy Analysis:**
- Sometimes, beneficial ownership can be inferred through proxy analysis. For example, if shares are held by a nominee or trustee, but the economic benefits flow to a particular individual or entity, that individual or entity is considered the beneficial owner.

### Beneficial Shareholder in Unlisted Companies:

1. **Shareholder Records:**
- In the case of unlisted companies, shareholder records are maintained by the company itself or its registrar and transfer agent (RTA).
- Shareholder agreements or other documents may specify the beneficial owners, especially in the case of closely held companies.

2. **Disclosure Requirements:**
- Unlisted companies may not have the same stringent disclosure requirements as listed companies. However, shareholder agreements, share transfer forms, and other documents can indicate beneficial ownership.

3. **Legal and Contractual Agreements:**
- Beneficial ownership in unlisted companies may also be determined through legal agreements, contracts, or resolutions that specify the economic interests of shareholders.

### Practical Steps to Determine Beneficial Shareholders:

- **Review Shareholder Agreements:** Examine shareholder agreements, voting rights agreements, or other contractual documents that specify the beneficial owners.

- **Analyze Proxy Voting Patterns:** If available, analyze proxy voting patterns to determine who controls voting rights and economic benefits.

- **Legal and Regulatory Guidance:** Seek legal advice or refer to regulatory guidelines for specific procedures in identifying beneficial owners, especially in complex ownership structures or cases involving trusts and nominees.

### Conclusion:

Identifying beneficial shareholders involves looking beyond the registered holder of shares to determine who ultimately enjoys the economic benefits of ownership. For listed companies, depositories and shareholding disclosures are key sources of information. For unlisted companies, shareholder agreements and legal documents play a crucial role in identifying beneficial ownership.

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