Data collated by ICICI Securities Ltd shows that promoters have pledged 10.4% of their stake on an aggregate basis at the end of the March quarter. This is the highest in the past three years, and the fact that it comes in the backdrop of a weak market is a concern. Declining share prices may trigger margin calls for some promoters, which will exert further pressure on these shares. A large number of promoter groups have pledged more than two-thirds of their holding to financial institutions, the study shows.
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