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corporate actions · intermediate

Promoter pledging

Promoter pledging is when company promoters pledge shares as collateral for borrowing.

Indian listed companies disclose promoter pledged shares in shareholding pattern filings.

High pledge levels can raise concern about forced selling if lenders invoke the pledge.

Pledge percentages are watched closely in mid-cap and promoter-driven companies.

Unpledging reduces encumbrance and is often read as a balance-sheet or confidence signal.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.