 "NBFC")
Promoters strapped for funding, following the Securities and Exchange Board of India's (Sebi) move to tighten norms regarding loan against shares (LAS), have found some relief from non-banking financial companies (NBFCs). These now account for 53 per cent of the Rs 2.06 trillion worth of shares pledged by promoters as of December 31, 2019.
In January 2019, NBFCs’ share stood at 39 per cent or Rs 85,919 crore, showed the data from nseinfobase.com. As of December 31, their exposure to promoter pledging was Rs 1.11 trillion, up 29 per cent.
“NBFCs are treading the segment carefully and are extending LAS-credit to select promoters. They need to ensure that the money comes back in time and they are not required to
