Promoter pledging hit a six-month high on sustained decline in markets

More than Rs 15,300 crore of fresh pledges created in March as falling stocks prices force promoters to offer additional shares of their firms

The sharp sell-off in the markets has led to a spike in promoter pledging as declining share prices have forced company owners to offer additional shares of their firms. So far in March, fresh pledge creation stands at Rs 15,316 crore, which is highest seen in six months.

In fact pledging in March is up 24 per cent over February, showed data sourced from nseinfobase.com.

 

According to experts, the market cap erosion of these companies has forced their promoters to beef