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Showing posts with the label promoters pledging

Listed Companies without (Zero) Promoter Holding in the Indian Stock Market ?

 Listed Companies without (Zero) Promoter Holding in the Indian Stock Market ?   According to the minimum public share holding rule as per the Regulations for the Indian Equity Market and it's Exchange, a listed company must allocate at least 25 Percent of it's shares to the Public including Retail Market participants. When we say public shareholders(25 Percent Rule), it may include Retail investors, HNI and Large Investors and Institutions.  On the other side for the Promoters, there is a rule that they should not hold more than 75 Percent of Shares in a single listed company in the Indian Equity Market. If a company owns more than 75 Percent of Shares in a company, then those shares must be sold through Divestment in a particular period of time.  Generally, these Promoters' Shareholding rules are not applicable for the Government owned companies and exempted entity. So they can hold more than 75 Percent of it's shares at anytime. Eg: Govt owned Insurance Companies,...

Is it good to invest in stocks where the Promoters are pledging their holding ?

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Is it good to invest in stocks where the Promoters are pledging their holding ? Generally, the Founders or Promoters of the public listed company have to mortgage their holding to the banks or some other companies due to the Purpose of their Business or Personal reasons. During the Q4FY19 - the January - March period, the Pledging percentage of Promoters holding have risen significantly listed in the BSE 500 (Bombay Stock Exchange). The Reliance Capital and Reliance Infra were increased their pledging up to 100 percent of their Holding. Already, the RCOM(Reliance Communication) has pledged its entire stake to debt crisis and now it is in bankruptcy process. The listed media company Dish TV had also pledged up to 95 percent of Promoters Holding. The Promoters of Eveready Industries and Zee Entertainment have almost pledged more than 50 percent of their holding. The Pharmaceutical Giant Sun Pharma had too pledged nearly 11 percent of the promoters share holding. Apollo Hospitals had a 78...