Lock in of pledged shares

girish parmar (Querist) 27 April 2013 This query is : Resolved
We are a Banker and have shares of a Borrower Pledged with us as security. The said Borrower (Company) is desirous of issuing preference shares to Promoters. As per Regulation 78(6) of SEBI (ICDR) Regulations 2009, the Company is required to lock in the entire pre-preferential holding of proposed allottees from the Relevant Date to a period of six months from the date of Preferential Allotment. In this regard whether it is essential to release our pledged shares to the Company for locking of the same as per ICDR regulations. Is is not possible to carry out locking formality of the pledges shares?

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Anirudh (Expert) 27 April 2013
Are you not having legal consultant engaged by the Bank? Why don't you consult him/her? Bank can definitely afford the fees of the lawyer. Better approach a lawyer, pay his/her fee and get the advice.

Guest (Expert) 27 April 2013
If you are a banker, you must also have a legal and merchant banking departments at the zonal or HO level, from whom you can consult conveniently. With partial and incomplete information, like the present one of your query, you are not likely to get appropriate solution, where supplementary information would also have to be divulged on asking by the members.

If you ask me, there can be more than 10 queries in this respect for which your bank as well as the company may have to provide vital information, as the query cannot be resolved merely by reading between the lines.

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