Picture on Picture in C# form

In my application, I have a form with Picture element which displays a  jpg image. The requirement is, on the top of the jpg image, there should be a "png". Some portion of the "png" is transparent and so at those places, you can see the jpg image which is beneath the "png".


Is this type of functionality possible in C# Forms (picture over picture).  I have tried to create a new picture element for the "png", but it defeated the purpose of transparency, since the picture box itself is opaque, I have set the background color of the top level picture box as "Transparent" but still I don't see any transparency.

Is there any solution for this.

Thanks,