Pledge of share

why promoter pledge the shares????

What is pledge of share????

Replies (3)

Dear Sir,

 

What is a pledge: –

Possessory security against a debt or promise

– Liens or hypothecations are mere obligation against property without parting with possession

– Pledge transfers possession of property also

– Pledge is different from usufructuary mortgage:

 In the latter, the mortgagee is allowed the right of usufruct.

Pledge is merely right of possession; without right in the usufruct

 

Detail you can study from the attached presentation,

 

Regards,

Thanks To Vivek for Sharing

Thank you so much sir.

regards,

Kundan C. Tanawade

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