Deutsche Bank has come out with a report on BSE 500 companies share pledges. CNBC-TV18’s Nimesh Shah has all the details. There is a Securities and Exchange Board of India’s (Sebi) board meet tomorrow and there is a likelihood that Sebi is going to enhance the regulatory framework with regards to the promoter pledged shares in Indian market.
It is an interesting data which Deutsche Bank has compiled for the BSE 500 companies. For the quarter ended, the total number of companies within the BSE 500 which have promoter pledged share is 114. The total market value of those pledged shares goes to $28 billion. Within that there are at least 34 companies where the promoter pledged shares is more than 20 percent. This is all known but the fact that there is a Sebi board meet tomorrow, this is very crucial and an important data to watch out for.
The Deutsche Bank report says that relatively higher promoter pledged shares are in sectors like industrials, materials and utilities. So the number of pledges shares going up vis-à-vis the pledged shares going down for Indian companies has also gone up in the last quarter.
So there is this big talking point about promoter pledge shares and the kind of impact it has had on the market. This data will be very crucial and the fact that there is a Sebi board meet is going to enhance the regulatory framework.