Promoter encumbrance refers to the encumbrances on shares held by the promoters or major shareholders of the company. These encumbrances may be created to secure a loan or debt, and can limit the ability of the promoters to sell or transfer the shares. Promoter encumbrances are important to monitor as they can impact the overall control and ownership of the company.
Non-promoter encumbrance, on the other hand, refers to the encumbrances on shares held by entities or individuals who are not promoters or major shareholders of the company. These encumbrances may be created for various reasons such as collateral for a loan, or to secure a debt. Non-promoter encumbrances are also important to monitor as they can impact the overall shareholding structure of the company.
Both types of encumbrances can impact the trading of shares of a company and can affect the overall financial health of the company. It is important for investors to be aware of the nature and extent of any encumbrances on shares before investing in the company.