Well, to get money you have to put your asset on the block as pledge. So, nothing wrong about it. Its a kind of margin funding, albeit with much less aggressive terms.

 

Now I agree to your disclosure argument. As an investor, I have full right to work out from what quarters selling can emanate from. Its generally said, that you can bid against any seller, but if the promoters' share enter the market, you better run for cover rather than fighting against it. Infact, SEBI can go one step further to make a detailed declaration about pledged holding. Details would include the terms of the pledge.

 

If a promoter has pledged 100 shares at Rs. 100 a share to raise 8000, then its no harm if the current share price is Rs. 200. To worry and sell under those circumstances would be quite a panic type of a reaction.

 

At the end of the day, all we need to know if the pledged shares can hit the market. Other than that, it will be reading too much into the thing. To brandish pledging as speculating is quite unwarranted.