If a company's promoters wants to pledge its shares which are In LOCK IN PERIOD, does they can do this ?
6 Replies
PRAVEEN KUMAR
(MBA (Finance) B.Com.(P))
(3443 Points)
Replied 06 October 2009
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.
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 06 October 2009
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
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 06 October 2009
completely agree with Ankur sir ji
Amit
(Assistant Manager)
(21 Points)
Replied 16 June 2011
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..
Bijal Shah
(Assistant Company Secretary)
(22 Points)
Replied 15 January 2018
Can Non promoter Shareholder of the Comapny Pledge their shares? What if their shares are in Lock in?
Recent Topics
- Interest and penalty on advance tax shortfall
- Joint Account with 3 legal heirs.......
- TCS adjustment
- GST audit and scrutiny
- GSTR9 Table 8 - 8A and 8B difference is 4D(1). in
- Eway Bill query for inter state
- Taxability of income in USA of resident oci holder
- Clarity regarding Sec 16(4)
- GST ON HOTEL ROOMS details
- Relief for Delayed Filing of Tax Forms
Related Threads
CAclubindia
