Multiple choice general knowledge

In case of pledged balance in demat form, the corporate benefits will flow to the:

  1. pledgor/ pledgee at the discretion of the Issuing Co.

  2. pledgor/ pledgee at the discretion of the parties concerned.

  3. pledgee.

  4. pledgor.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Corporate benefits for pledged securities flow to the pledgor (original owner), not the pledgee. The pledgee only has a charge on the shares, not ownership rights. The discretion of parties or issuing company doesn't override this default position.

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