Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,910.1553.35
Stock Analysis, IPO, Mutual Funds, Bonds & More

Pledged shares by promoters fall 16% in September

The value of promoter's pledged shares stood at Rs 2.5 lakh crore as on August 30, 2018.

PTI|
Oct 08, 2018, 07.16 PM IST
0Comments
ThinkStock Photos
Investment-Think-1200
The value of promoter's pledged shares stood at Rs 2.5 lakh crore as on August 30, 2018.
New Delhi: The value of shares pledged by promoters of BSE-listed companies declined 16 per cent to Rs 2.10 lakh crore at the end of September, according to exchange data.

The value of promoter's pledged shares stood at Rs 2.5 lakh crore as on August 30 this year.

Promoters usually raise funds against the shares pledged for the same company or to finance other projects. It means that these shares are offered as collateral to financial institutions in exchange for loans.

Till September this year, pledging of shares was seen in as many as 2,919 firms out of 4,643 BSE-listed companies.

High pledging levels are typically not considered as a good sign by investors as a downturn in the market price can lead to invocation and change in management. Further, decline in the level of share pledging may indicate scaling down in stress.

According to BSE data, promoters of as many as 401 companies pledged up to 30 per cent of their respective holdings, while 131 firms saw in the range of 30-50 per cent of the promoter's holding being pledged in the month of September.

Further, there were 77 companies in which 50-75 per cent of the promoter's holding was pledged.

Also Read

Majority of Karvy clients get back pledged shares

VTB decides to sell pledged shares of Zee promoters

Pledged share resolution key trigger for Zee stock

Reliance Infra invokes RPower's 10.19 crore pledged shares

Sale of pledged shares led to stock fall, says YES Bank

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service