NSE will eliminate more than 1,000 securities acceptable as collateral, leaving only about 730 counters for F&O and intraday traders to pledge for margin trading facility.
A high pledge is not considered a good sign by the investors as a downturn in the market price can lead to invocation and change in management.
Usually, a fall in promoter pledge is considered as a positive sign, but it has be read with the macro-economic situation
Top 10 companies which saw a double-digit rise in promoter pledge in Q1 include names like Jindal Steel, Kesoram Industries, Orient Electric, IndusInd Bank, Bharat Wire etc.
Deccan Chronicle Holdings (DCHL) has been witnessing selling pressure for five consecutive sessions since last Wednesday, losing more than 22 percent in five days. Shares were locked at 5 percent lower circuit on Tuesday.
Talk in the market is that a couple of brokers who are facing a liquidity crisis have sold pledged shares of companies, triggering a sell-off in the shares of nearly a dozen mid-cap companies.
Putting to rest rumours, Madhavan Menon, the managing director of Thomas Cook India tells CNBC-TV18 that the parent company, Thomas Cook PLC, has no plans to sell off its Indian arm.