Pledged holdings fall to Rs 2.12 trillion in Q2: Edelweiss Securities

Analysts at Edelweiss say the high share pledging is not only the risk for promoters but also to non-banking finance companies (NBFCs) that lend money with shares as collateral

The value of pledged holdings stood at Rs 2.12 trillion for the quarter ended September 2018 compared to Rs 2.38 trillion at the end of the preceding quarter. The fall in the value of pledged shares was largely on account of the weakness in stock prices. High promoter pledging has become a pet peeve for investors at a time when liquidity situation is precarious due to the risk aversion among market lenders following the default by IL&FS. “The quarter that went by has brought in lot of systemic liquidity related concerns which have severely dented the market sentiment. The cascading