Posted: 23 Jan 2009
Date Written: January 23, 2009
The corporate performance results season is round the corner and for the next three weeks or so, capital market functionaries including companies, other intermediaries and obviously investors will be busy in going through the loads of information filed with the stock exchanges. The information filed with the stock exchanges, inter alia, include important disclosures which corporates routinely file under various provisions of regulations of the Securities & Exchange Board of India (Sebi) and the different clauses of the Listing Agreement (LA) they enter into with the exchanges. However, in spite of making this disclosure tight enough, there is a need to add one more provision, at least in the form of a footnote and that is with respect to disclosure about the pledged shares from the promoter's category. The paper intends to set forth the key concepts behind pledge of shares.
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