Promoters turned cautious with share pledging in June quarter, shows data

The value of pledged promoter holdings in the BSE 500 companies during the June quarter declined to 1.95 per cent, from 2.34 per cent in the previous quarter. The number of companies were promoters, or major shareholders, have pledged their holdings stood at 89, down from 105 during the March 2020 quarter, the data analysed by Kotak Institutional Equities showed. 

The brokerage said the decline is on account of rejig in the BSE 500 index and also due to the complete release of pledged shares in case of some companies. Typically, promoters pledged their shares to generate liquidity. 

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