Pledged Shares

Adani Group: The repayment of the loan will release the pledge on shares of promoters in four Adani Group companies, Adani Enterprises, Adani Ports, Adani Green Energy and Adani Transmission

Move follows Hindenburg Research accusing Adani Group of improper use of offshore tax havens and stock manipulation

After the release, the total promoter holding pledged with lenders now stands at 2.16 per cent from 52.21 per cent earlier

Private sector IndusInd Bank on Wednesday said it has acquired a 4.79 per cent stake in embattled tea plantation firm McLeod Russel India by invoking 5 mn pledged shares of the company

Value of pledged shares soared 56% to Rs 2.77 trillion in August from Rs 1.78 trillion at the end of July

Prasad owned a total of 640,000 RIL shares and his compensation stood at Rs 11.15 crore in FY20.

The companies with high promoter pledging also saw a sharp fall in their share prices; market experts say companies with high pledging have seen sharp selling

The promoter family trust holds 39.34 per cent in APSEZ

Torrent said a pledge of shares is a security interest in favour of lenders and can be enforced by sale of such shares in event of default

However, this isn't a blanket policy and will be implemented on a case-by-case basis; accounts granted relief will undergo supervisory review

The promoter group shareholding in AHEL was around 30.80 per cent at the end of September, 2019, of which around 66.19 per cent is pledged, according to regulatory filing

Some criticised the move, saying traders were being punished for the actions of promoters

Here's a selection of Business Standard opinion pieces for the day

Shares of publicly traded firms with a large portion of equity pledged as collateral risk abrupt declines should lenders move to recover their dues

Increased pledging is often seen as a sign of liquidity issues with promoter groups

Among the details firms have to furnish are end-use of money and security cover provided

At the end of March quarter, outstanding promoters pledged shares stood at Rs 1.95 trillion.

Market regulator says move aimed at restoring investor confidence

Share pledging is typically done by promoters to raise funds either in the same company or for financing other projects

While pledging is usually a sign of financial distress, sometimes the promoter may be raising capital he can deploy for attractive returns