Promoters now more alert on pledging shares, says Sebi chief

Sebi Chairman Ajay Tyagi on Monday said promoters of listed companies have become more alert on pledging shares as they are skeptical that control might go to someone else.

He also noted that putting restrictions or banning pledging of shares beyond a certain percentage may not be a very good idea since these shares are properties of the promoters.

His comments come against the backdrop of rising instances of promoters' pledging their shares in companies to raise funds.

"Promoters are now more alert as they are skeptical as to that their control might go to someone else...," he said at an event here.

Tyagi noted that the regulator has put in place various disclosure requirements with respect to pledging of shares by promoters of listed companies.