New Delhi, Apr 5 (PTI) The value of shares pledged by promoters of BSE-listed firms stood at Rs 2.4 lakh crore at the end of March quarter, a decline of 21 per cent from the preceding three months, the bourse data showed.

The value of shares pledged by promoters stood at Rs 3.03 lakh crore at the end of December quarter.

Share pledging is typically done by promoters to raise funds either in the same company or for financing other projects.

High pledging levels are typically not considered a good sign by the investors as a downturn in the market price can lead to invocation and change in management.

Till March this year, pledging of shares was seen in as many as 3,074 of the 5,035 BSE-listed companies. The value of these shares pledged was Rs 2,39,611 crore, the data noted.

At the end of last month, value of shares pledged with non-banking finance companies (NBFCs) was Rs 1,43,336 crore.

Besides, there were 461 firms in which 5-30 per cent stake of the promoters was pledged, while in case of 140 companies, 30-50 per cent holding of the promoters was under pledge. As many as 81 companies had 50-75 per cent of promoters’ holding under pledge.

This is published unedited from the PTI feed.