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How to verify a company's shareholding pattern
Before trusting any "promoters are buying" WhatsApp claim, check the official filing. Every listed company files it, and it is free to read.
What the rule says
- Under Regulation 31 of SEBI (LODR) Regulations, 2015, a main-board listed company files its shareholding pattern every quarter within 21 days of quarter-end (e.g. by 21 October for the September quarter). SME-listed companies file half-yearly.
- A fresh pattern is also due within 10 days of any capital restructuring that changes paid-up capital by more than 2%.
- 100% of promoter and promoter-group holding must be in demat form.
Step-by-step: NSE
- Open NSE → Corporate Announcements → View All → Shareholding Patterns.
- Type the company name or symbol, choose the quarter.
- Open the filing: read Promoter & Promoter Group (A), Public (B) and the pledge/encumbrance columns.
Step-by-step: BSE
- Open BSE → Corporates → Corporate Filings → Shareholding Patterns.
- Select the security and the quarter ending.
- Compare at least the last 4–8 quarters, not just one.
What to look for
- Trend in promoter holding: steady falls deserve an explanation (sale, dilution, QIP).
- Pledged / encumbered promoter shares — see our pledged shares guide.
- FII/DII and mutual fund trend — a change in institutional holding is a fact; the reason is not always public.
- Very large count of small public holders with a sharp price rise can be a crowding signal — see pump-and-dump red flags.
- Insider trades: cross-check SEBI PIT Regulation 7(2) disclosures on NSE/BSE.
Watch: Sumit explains
Questions? WhatsApp Sumit Bhardwaj →FAQ
- How often is shareholding pattern updated?
- Quarterly for main-board companies, within 21 days of quarter-end; half-yearly for SME-listed companies.
- Where is the official shareholding pattern?
- On NSE (Corporate Filings → Shareholding Patterns) and BSE (Corporates → Corporate Filings → Shareholding Patterns). SEBI's corporate filings page links both.
- Does rising promoter holding mean the stock is safe?
- No. It is one data point. Check debt, cash flow, pledges, governance and valuation too.
Sources
- SEBI: Corporate filings — NSE and BSE links
- NSE: Shareholding patterns
- BSE: Shareholding patterns
- NSE: Compliance calendar (Reg 31 — 21 days)