Tuesday, February 17, 2009

>India Strategy (MORGAN STANLEY)

India Strategy
Tracking Promoter Pledging:
What’s at Stake?

Impact on our views: The new SEBI regulations
require promoters/founders of companies to disclose the
amount of stock they have pledged. The following are
our observations:
Thus far, 293 companies have disclosed pledges on
their holdings.
At current market prices, the total value of pledged
stocks is US$6.8 billion.
This is about 1.1% of the current market cap of the
Assuming 50% margin, the bank credit to these
promoters at US$3.4 billion is 0.6% of outstanding bank

To see full report: India Strategy