What is pleading of share and how its affect company
pledging how does it work, here is all you need to know about pledged shares.
|Promoter pledged shares: Boon or bane for investors|
When one takes loans against the shares held, it is called pledging shares. This means that shares are offered as collateral or security against the loan taken by the individual that has pledged his/her shares. Shares can be pledged by a promoter or an investor.There are different reasons why promoters pledge shares. Normally, promoters pledging shares to meet temporary bridge financing requirement is understandable. Quite often promoters use the shares as a temporary pledge and exit the pledge by repaying the loan.