Fundamental Glossary / Indian Stock Market-Specific Fundamentals
Pledged Shares
Shares given as collateral, disclosed in the Indian shareholding pattern, most often by promoters.
Formula
The filing shows the number of shares pledged, encumbered, or otherwise committed, as a count and as a percentage of promoter holding and of total equity.
What it means
Pledged shares are the stock that a lender can sell if the borrower defaults. Until then they remain in the promoter's holding, which is why a high promoter holding and a high pledge can be true at the same time.
The disclosure is the Indian market's early-warning line. Promoter pledging, listed under ownership, is the same practice described from the borrower's side.
How to read it
A falling pledge, released because debt was repaid, is a cleaner register. A falling pledge because the lender invoked it is a sale into the market. The announcement says which.
What to watch
Non-promoter pledges exist and are less systematically discussed. The line in the shareholding pattern is the one to read each quarter rather than a single headline percentage.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.