24, Aug, 2019
Stock Market Classroom with Udayan Mukherjee | All you need to know about promoter pledged shares

Stock Market Classroom with Udayan Mukherjee | All you need to know about promoter pledged shares

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Recently there was turmoil in some stocks due to high pledge shareholding by promoters.

Pledging of shares is not essentially considered bad or should not be taken in a negative way but fierce selling in stocks from Reliance ADAG, Essel Group (including Zee Ent) and Apollo Hospitals in the recent past has made investors cautious.

Promoters pledge their shares either for capital requirement for business or for a personal reason including other investments. But, the lender has the authority to sell the shares in case promoter fails to meet the margin call.