Warning! Investors beware of these penny stocks as their 100 per cent shares are pledged

The market capitalisation of BSE-listed companies amounts to Rs 3,11,62,095 crore as of Tuesday, October 31, 2023.

On Tuesday, the benchmark indices ended the trading session lower. BSE Sensex Index was down by 0.37 per cent at a level of 63.874.93 and NSE Nifty-50 Index was down by 0.32 per cent at a level of 19,079.60. About 1,898 shares have advanced, 1,737 declined, and 125 are unchanged on the BSE.

On the broader market, the indices were trading in green with the BSE Mid-Cap Index up 0.21 per cent and the BSE Small-Cap Index up by 0.03 per cent.

The market capitalisation of BSE-listed companies amounts to Rs 3,11,62,095 crore, accompanied by 157 stocks hitting a 52-week high and 32 stocks reaching a 52-week low as of today’s closing. 

What is pledging shares?

It is common for investors to use their shares as collateral to borrow money from banks and other financial institutions. This is known as pledging shares. It is a popular way for promoters and investors to raise capital without giving up ownership of their shares. Investors should be aware of the risks involved in pledging shares before investing in these stocks to avoid losses.

Following are the list of Penny Stocks with 100 per cent shares pledged:

(*Share price is intraday high of October 31, 2023)

Disclaimer: The article is for informational purposes only and not investment advice.