Can Lock in Period Shares be Plegded

Others 5840 views 6 replies

If a company's promoters wants to pledge its shares which are In LOCK IN PERIOD, does they can do this ?

 

 

Replies (6)

i don't think so because purpose of the lock-in is to ensure that promoters do not get unearned gains arising from transaction in stakes, any loopholes that will allow owners to pledge their shares amount to diluting the lock-in condition.  so they cannot pledge the lock in shares.
 

 

Hi,

Locked-in shares can 100% be pledged.

Locked-in shares can be pledged with a Lender (such as a Bank) for a loan. However, the pledge cannot be closed or invoked before the lock-in release date.

You have to provide the details of pledged shares in balance sheet, shareholding pattern and everywhere else as desired by stock exchange.

Regards

Agree with Mr. Ankur.

 

Lock-in period is given so, that promoters do not sell their shares. But, If they require mony or they simply want extra money then they can pledge shares.

completely agree with Ankur sir ji

Dear Anuj can locked in shares be pledge in favour of NBFC's. Someone told me that Regulation 30 of ICDR prohitbits the same. Please suggest..

Can Non promoter Shareholder of the Comapny Pledge their shares? What if their shares are in Lock in?


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