Demystifying Share Pledging: A Practical Guide for Indian Stockholders

Share pledging is when promoters use their shares as collateral to borrow money. Just like individuals mortgage property or gold for loans, promoters can pledge company shares to raise funds.Have you ever come across the term “Promoter Share Pledging” while analyzing stocks? It’s one of those critical terms that often gets ignored but can make or break your investment. In this blog, we’ll simplify what share pledging means, why promoters do it, and how it can impact you as an investor