Can shares be hypothecated?

Can shares be hypothecated?

Securities held in a depository account can be pledged/hypothecated to avail of loan/credit facility. Pledge of securities in NSDL depository requires that both the borrower (pledgor) and the lender (pledgee) should have account in NSDL depository. Pledge/hypothecation creation.

What is difference between Lien and pledge?

Lien is the right of a creditor to retain the properties belonging to the debtor until the debt due to him is repaid. A pledge occurs when goods are delivered for getting advance.

What are the types of pledge?

Types of Pledge / Hypothecation Transactions

• Pledge / Hypothecation Creation. The account holder / pledgor needs to submit an instruction to initiate a pledge/hypothecation request indicating the option ‘create a pledge/hypothecation’ in the pledge/hypothecation form.
• Pledge / Hypothecation Closure.
• Pledge / Hypothecation Invocation.

What is difference between bailment and pledge?

The main difference between pledge and bailment lies in the use of goods, i.e. the use of goods is prohibited in pledge, whereas in the case of bailment the party to whom the goods are being handed over can use them.

What are the three types of bailment?

There are three types of bailments: (1) for the benefit of the bailor and bailee; (2) for the sole benefit of the bailor; and (3) for the sole benefit of the bailee. A bailment for the mutual benefit of the parties is created when there is an exchange of performances between the parties.

What is bailment with example?

A Bailment that Benefits Both the Bailor and Bailee: An example of this would be parking your car in a paid parking lot. You would get the benefit of parking your car and the owner of the lot would get the benefit of the fee that is paid. A bailee can face liability for damaging the bailed items if they were negligent.

What is bailment explain?

Bailment represents a legal relationship wherein the physical possession of a chattel or personal property is transferred from one individual to another individual who will subsequently get the property’s possession but not the entire ownership.

What are the characteristics of bailment?

Characteristics of Bailment

• Contract: There must be a contract between the party who delivers the goods i.e. bailor and the party which receives the goods, i.e. bailee, no matter if it is express or implied.
• Delivery of Goods: Goods must be delivered by one party to another.

What are the various types of bailment?

Types / Kinds / Classification of Bailment

• Gratuitous Bailment.
• Non-Gratuitous Bailment:
• Bailment for the Benefit of the Bailor.
• Bailment for the exclusive Benefit of the Bailee.
• Bailment for the Benefit of the Bailor and Bailee.

What is gratitude bailment?

Gratuitous bailment is a type of bailment in which the bailee receives no compensation. For example, borrowing a friend’s car. A gratuitous bailee is liable for loss of the property only if the loss is caused by the bailee’s gross negligence.

What is bailment agreement?

bailment. n. 1) the act of placing property in the custody and control of another, usually by agreement in which the holder (bailee) is responsible for the safekeeping and return of the property.

Who is bailor and who is Bailee?

A bailor is an individual who temporarily relinquishes possession but not ownership of a good or other property under a bailment agreement. The bailor entrusts possession of the good(s) or property to another individual, known as the bailee.

What are the right and duties of bailor?

Duties and Rights of the Bailor

• Duties of the bailor. Duty to disclose faults. Duty to repay bailee’s expenses. Duty to indemnify the bailee. Duty to compensate bailee for breach of warranty.
• Rights of the Bailor. Right to enforce bailee’s performance. Right to claim damages. Right to claim compensation against unauthorized use of goods.

Who is bailor and bailee in banking?

The legal relationship that arises in case of safe custody/deposit is that of bailment. The customer, who deposits the things in the box for safe custody with the bank, becomes the ‘bailor’, and the bank becomes the ‘bailee’.

What is the difference between bailor and bailee?

Bailor refers to the original property owner, while bailee refers to the person who temporarily has possession of the property.

What is bank and customer relationship?

The relationship between a banker and a customer depends on the type of transaction. In this banker and customer relationships; both parties have some obligations and rights. The relationship between banker and customer is not only that of a debtor and creditor. However, they also share other relationships.

How does a bank act as a trustee?

Ordinarily, a banker is a debtor of his customer in respect of the deposits made by the latter, but in certain circumstances he acts as a trustee also. A trustee holds money or assets and performs certain functions for the benefit of some other person called the beneficiary.