The promoter pledging in March 2020 has touched the highest monthly levels in this year as the sharp fall in stock prices has forced a lot of Indian company promoters to pledge more shares to keep their LAS accounts active. Even fresh pledges have added up as the liquidity crunch in the market gets tighter. The month of March 2020 has seen fresh pledge creation to the tune of Rs.15,316 crore. The market cap erosion of these companies has forced their promoters to beef up the collateral value with more shares. Most existing LAS facilities are getting rolled over with higher pledges as the tight liquidity situation does not support repayments at this point of time. Some of the companies that created fresh pledges during the month of March include Adani Enterprises, Emami, Sadbhav Engineering and Aurobindo Pharma. In most cases, the stock prices had corrected very sharply. In fact, an analysis by India Ratings has highlighted that 21 of the BSE-500 companies will have to pledge more than 100% (additional collateral apart from shares) to maintain minimum 2.5-times cover.