SEs may have to be told about pledged shares

The Securities and Exchange Board of India (SEBI) is likely to introduce norms that require promoters or majority shareholders, who have pledged their own shares to financial companies, to make disclosures to stock exchanges. The proposal, which is still on the drawing board, is aimed at protecting the interest of minority shareholders, who consider the extent of promoter stake in a company as a critical aspect of their investment decision.