Procedure for pledging of shares in Demat mode

[K Degaleeswaran]

Dear Members,

I have to pledge shares held by holding company in its subsidiary for the loan facility provided by the lender to the subsidiary (as required by the financing documents).

Please let me know the procedure for pledging shares in Demat form.

Regards

K Degaleeswaran 

[Indrani Sanka]

HI,

Guess the below link would give you some information:

http://cusprofessionals.blogspot.in/

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Thanks,

Indrani

[K Degaleeswaran]

Thank you madam!

It talks generally about the pledging of shares and its consequences....

I need some more views reg. "steps involved in Pledging of shares in Demat" and need clarity on filing Form 22B in this regard.

 

Regards

K Degaleeswaran 

[Indrani Sanka]

HI,

Form 22 B is to be filed only when there is transfer of shares and the beneficial interest still lies with you. It is not that every one requests for the transfer.

You just have to pledge the shares and intimate to your dp. automatically the shares will be highlighted saying they are pledged there by further transfer by you would not be possible. Hold a board meeting to pledge the shares get into the agreement in this regard. file form 8 for the charge.

[kameswara Rao Kappagantula]

IN CASE OF pLEDGE STILL THE PLEDGEE INVOKED THE SAME THE BENEFICIAL OWNERSHIP LIES WITH THE PLEDGOR.

 

KAMESH

[K Degaleeswaran]

Thanks