Promoter

    Basics of Stock Market

    The person or group that controls a company, usually its founder, a business group, a parent company or the government.

    SEBI's ICDR Regulations define a promoter as a person named as a promoter in the offer document or annual return, or anyone with direct or indirect control over the company. Most Indian listed companies have one. Promoters often hold the chair or top executive role and a large share of the votes, which is why many governance rules focus on protecting minority shareholders from them.

    Formula

    N/A

    Why it matters

    Promoters run the business. Their stake indicates their confidence in the company.

    Indian example

    Related terms

    Promoter groupPromoter holdingPledged sharesRelated-party transaction (RPT)

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