Scope of the section relating to declaration by persons not holding beneficial interest in share - Companies Law - Circular : No. 34/76

Circular : No. 34/76 [8/18/75 ‑ CL-V], dated 28 ‑ 9 ‑ 1976. Subject:- Beneficial interest in shares ‑ Scope of the section relating to declaration by persons not holding beneficial interest in share ‑ Declaration of Beneficial Interests in Shares Rules, 1975 framed thereunder ‑ Some queries arising thereunder answered Some references have been received from certain banking companies asking for clarification in regard to the application of the above rules to the banks with which the stock exchanges deposit shares of their members as security deposit. This Department has since carefully considered the matter in consultation with the Department of Legal Affairs and is of the view that the provisions of the above section and the rules made thereunder will not be applicable to such banks as they are keeping the shares lodged with them by the stock exchanges as security deposit in accordance with the notification issued under the Securities Contract (Regulation) Act.