Information about Promoters

Meaning of Promoter

• In the stock market, a promoter is a person who plays a key role in the ownership of a company.
• The promoter follows the specific requests of the company.
• The promoter is recognized in the official documents of the company.

Main Functions of Promoter

• Deciding the name of the company and the location of operations.
• Determining the share capital.
• Selecting service providers for the company's listing.
• Ensuring the registration and operations of the company.
• Promoters maintain the public image of the company.

Need for a Promoter

• Not all companies are required to have a promoter.
• Some companies, like Paytm, do not have promoters.
• According to SEBI, a person holding more than 20% ownership is called a promoter.

Importance of the Promoter

• A promoter carries the mental tension of the company.
• Promoters manage the capital and responsibilities.
• Retail investors receive positive or negative signals from the promoter's actions.

Impact of Promoter's Responsibilities

• The sale or purchase of shares by the promoter signals retail investors.
• The company's condition is affected by the promoter's share planning.

Promoter and Loans

• Promoters can take loans using their company's shares.
• The condition of the loan is affected if the price of the promoter's shares falls.

Conclusion

• Promoters play a vital role in the growth and stability of the company.
• Retail investors should pay attention to the activities of the promoter.
• The promoter's interests and decisions have an overall impact on the company.

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