Mutual funds, like non-banking finance companies, have often acted like ‘shadow banks’ — financing promoters against their holdings in prime group companies. Rana Kapoor-controlled Morgan Credit and YES Capital are not the only closely-held firms placing debt securities with funds to raise money. In a few cases, promoters have struck deals without technically ‘pledging’ the shares. Here’s a list of entities owned by promoters of large companies leveraging against stocks with fund houses.
