What is substantial holdings?

Answer 1

Substantial holdings refer to a significant amount of shares or securities owned by an individual or entity in a company, typically exceeding a predefined threshold, such as 5% of total shares. These holdings may influence corporate governance, decision-making, and the Stock Market perception of the company. Investors with substantial holdings often have the power to impact shareholder votes and company policies. Disclosure of substantial holdings is usually required by regulatory bodies to promote transparency.