Here's what experts have to say about loan against shares

Mutual Fund (MF) investors have learnt over the past few months that many Indian promoters have relied heavily on pledging their shares and have raised money from their MF schemes to support their core and non-core business activities and the sharp fall in the prices of pledged shares has resulted in a huge problem for mutual funds and for non-banking financial companies (NBFCs). Somasekhar Vemuri, Senior Director at CRISIL Ratings, Ananth Narayan, Professor at SPJIMR and Jayesh Mehta Managing Director and Country Treasurer at Bank of America shared their views and outlook.