ICICIdirect.com has come out with its report on pledged shares. According to the research firm companies that have taken loans against shares have to provide further margin in cash or pledge more securities to maintain the margin requirement.
Promoters resort to various modes of raising finance to meet their business and personal needs. Loan against shares is one such method of raising finance. Under this method, promoters pledge the shares held by them with lenders to get the required financing. These loans typically have tenure of one to three years and carry a margin requirement of two or three times. Simply put, it means that the value of the promoterDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
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