Promoters pledging shares soared to 7 year high in March quarter

Pledging of shares by promoters soared to a 7-year high in the March quarter as stock markets witnessed a selloff in January and February. Promoters usually pledge shares as collateral to raise funds. When stocks fall, they are forced to bring in more of their holdings. Among firms with M-cap of over Rs 1,000 cr, 57, including Reliance Infra and Apollo Tyres, witnessed an increase in promoter pledging. Promoters of Reliance Defence & Ballarpur Industries have pledged all their shares.