Sebi's share pledge disclosure norms to impact 300 listed companies

At the end of March quarter, outstanding promoters pledged shares stood at Rs 1.95 trillion.

Capital market regulator Securities and Exchange Board of India’s (Sebi’s) latest directive to India Inc on share pledge disclosures will impact as much as 300 companies.

An analysis of share pledging data for the quarter ended March 2019, shows there are 300 listed companies where the quantum of shares pledged by promoters exceeds 50 per cent of their promoter shareholding and 20 per cent of total shareholding.

“Promoters shall be required to disclose separately detailed reasons for encumbrance whenever the combined encumbrance by the promoters and persons acting in concert (PACs) crosses 20 per cent of the total share capital