Who is the Beneficial Owner in the Demat Account?

The investor whose securities are held in electronic form in a Demat account opened with a depository through a Depository Participant such as 021.trade is called a ‘Beneficial Owner’ (BO). Although the securities are held electronically by a depository  (like NSDL or CDSL) on behalf of the investor, the BO is the one entitled to all the benefits associated with those securities, such as dividends, voting rights, and other entitlements.

The depository holds these securities in a fiduciary capacity, meaning it safeguards them on behalf of the investor, who is recognized as the Beneficial Owner.