BSE cracks down on high promoter, non-promoter encumbrance

The Story in Brief

The BSE has issued a measure targeting companies with high promoter and non-promoter share encumbrance. The move is part of efforts to improve transparency around pledged shares. Details of the specific thresholds or compliance steps are not yet publicly available due to a garbled official communication. Market participants expect the regulator to tighten disclosure norms after multiple corporate governance lapses linked to undisclosed pledges.