I still remember that period in early 2009 when not a day passed when a listed Indian company did not came out in the open to disclose the pledging of shares by its promoters.
Ultimately, the debate wasn’t centered around which promoter had pledged his shares to raise funds, but rather on who hadn’t disclosed this information to the stock exchanges.
Also, as the count of companies disclosing pledging increased, so did the number of investor queries that I handled.
People got so worried hearing reports of pledging from the promoters of companies whose shares they held, that many sold off their entire holdings just out of fear.
After all, but for a handful of them, virtually every promoter of India Inc.’s leading companies was admitting to pledging shares for many years in the past.
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