Prachi Tiwari, B.A. LL.B. (Hons.), Narsee Monjee Institute of Management Studies, School of Law, Navi Mumbai ABSTRACT Promoters of listed companies frequently raise financing by pledging their shares as collateral with banks and other lenders. While this is a legitimate financing tool, it carries significant risk for minority shareholders: if a promoter defaults, the lender can invoke the pledge and sell the shares in the open market, triggering price volatility, loss of promoter control, and...