Description

BSE implements surveillance measures for companies with high promoter and non-promoter encumbrance under SEBI SAST Regulation 28(3), adding Tulsyan NEC Ltd to the framework.

Summary

BSE has implemented surveillance measures for companies with high promoter and non-promoter encumbrance as per Regulation 28(3) of SEBI (SAST) Regulation 2011, effective July 31, 2025. One new company, Tulsyan NEC Ltd, has been added to this framework while no companies are being removed.

Key Points

  • New addition: Tulsyan NEC Ltd (Scrip Code: 513629, ISIN: INE463D01016)
  • No companies are moving out of the framework
  • Framework maintains 9 companies under surveillance
  • Measure targets companies with high promoter and non-promoter pledge levels

Regulatory Changes

Implementation of SEBI (SAST) Regulation 28(3) surveillance framework for companies with excessive encumbrance levels affecting both promoter and non-promoter shareholding.

Compliance Requirements

  • Enhanced monitoring of pledge levels and encumbrance disclosures
  • Stricter surveillance on trading activities
  • Regular compliance reporting requirements for affected companies
  • Adherence to SEBI SAST regulations regarding substantial acquisition of shares and takeovers

Important Dates

  • Effective Date: July 31, 2025
  • Framework applies to all listed securities with high encumbrance levels

Impact Assessment

Market Impact: Medium - affects specific companies with high pledge ratios, potentially impacting investor confidence and trading patterns. The surveillance measure serves as a risk management tool to protect investor interests.

Operational Impact: Companies under this framework face enhanced scrutiny and may experience increased compliance costs and reporting requirements.

Current Framework Coverage

The consolidated list includes 9 companies:

  1. B.L.KASHYAP AND SONS LTD.
  2. Forbes & Company Ltd.
  3. Forbes Precision Tools and Machine Parts Ltd
  4. Indo Tech Transformers Ltd
  5. Jayaswal Neco Industries Ltd.
  6. Steel Exchange India Ltd
  7. Thyrocare Technologies Ltd
  8. Tourism Finance Corporation of India Ltd
  9. Tulsyan NEC Ltd (newly added)

Impact Justification

Affects specific companies with high encumbrance levels, impacting trading conditions and investor awareness