Investors use half of NSE shares to secure bank loans
Investors use half of NSE shares to secure bank loans
Retail investors on the NSE have used 52.4% of their shares to secure bank loans, indicating that less than half of small investors' portfolios represent actual wealth. A report by CMA shows that individuals pledged a total of 6.52bn shares in the quarter ended September, up from 6.43bn shares a year earlier. The CMA report also shows that the shares were pledged by only 41,308 individual investors who have major holdings compared to the rest of the 1.52 million retail shareholders in the review period. The number of individuals who used their shares as collateral a year earlier stood slightly higher at 42,478 while that of their non-borrowing peers was 1.47 million.
Investors use half of NSE shares to secure bank loans
Retail investors on the NSE have used 52.4% of their shares to secure bank loans, indicating that less than half of small investors' portfolios represent actual wealth. A report by CMA shows that individuals pledged a total of 6.52bn shares in the quarter ended September, up from 6.43bn shares a year earlier. The CMA report also shows that the shares were pledged by only 41,308 individual investors who have major holdings compared to the rest of the 1.52 million retail shareholders in the review period. The number of individuals who used their shares as collateral a year earlier stood slightly higher at 42,478 while that of their non-borrowing peers was 1.47 million.