Promoters increased or decreased their holdings by 10% in these 20 companies in Q1; do you own any?
Updated : July 30, 2019 12:41 PM IST
Pledging of shares is not essentially a bad practice. Companies often do that to meet liquidity needs, but at a time when the economy is showing signs of a slowdown, companies with high promoter pledge could add to your risk.
To reduce volatility and bring in more transparency, the market regulator SEBI, after a meeting on June 27, came out with stricter norms for pledging shares.
Promoters have to disclose in details the reasons for encumbrance if pledged shares account for more than 20 percent of the total share capital of the company or 50 percent of the total promoter holding, SEBI has said.
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