The amount of risk that companies run by pledging shares are different for small and mid-cap companies than it is for large-caps. The betas are far higher in the case of small companies because if the market corrects, the stocks of such companies plummet, resulting in financial institutions selling these shares and putting further pressure on the stocks.  

At 11.30 am Monday, the headline equity indices, i.e. Sensex and Nifty 50 were trading marginally lower due to recession jitters.