InvestorQ : Is it true that SEBI is planning some major changes to the pledging share rules for promoters and what would that mean for shareholders?
Aditi Sharma made post

Is it true that SEBI is planning some major changes to the pledging share rules for promoters and what would that mean for shareholders?

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Aashna Tripathi answered.
2 years ago
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In the last few months we have seen shareholders of Dewan Housing, Zee and ADAG group suffering loss of value because pledged shares got sold in the market. To protect the interest of minority shareholders, the SEBI is planning to make some key changes at the next meeting. One change that is likely is that where the promoter pledge exceeds 20% of holding, then the promoter will have to give a detailed justification for the same. Secondly, there is also a plan to integrate the pledging of shares with the Insider Trading regulations and the SAST (Substantial Acquisition of Shares Act) so as to give a proper picture of the company.

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