Now Reading: BSE cracks down on high promoter, non-promoter encumbrance
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BSE cracks down on high promoter, non-promoter encumbrance
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…
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.
The Indian Opinion
Long-overdue but the circular is only as good as enforcement. Will the exchange actually flag companies where promoters pledge more than, say, 50% of their holding, or will it remain a box-ticking exercise? The real test is whether this measure forces promoters to disclose beneficial ownership behind non-promoter pledges, or simply adds another compliance layer that gets gamed.
Source: bseindia.com
This story was synthesised by AI from the source linked above.
