Description

BSE updates list of securities under surveillance due to high promoter and non-promoter encumbrance per SEBI SAST regulations, with 4 companies moving out of the framework.

Summary

BSE has updated its surveillance framework for companies with high promoter and non-promoter encumbrance as per SEBI (SAST) Regulation 28(3), effective August 1, 2025. No new securities were added to the framework, while four companies moved out of the restrictive measures.

Key Points

  • No new securities added to the high encumbrance surveillance framework
  • Four companies successfully moved out of the framework: B. L. Kashyap and Sons Ltd, Forbes & Company Ltd, Forbes Precision Tools and Mac, and Tourism Finance Corporation of India Ltd
  • Consolidated list now contains 5 securities under surveillance
  • Framework monitors companies with high promoter and non-promoter pledge levels

Regulatory Changes

  • Updated surveillance list effective August 1, 2025
  • Framework continues to operate under SEBI (SAST) Regulation 28(3)
  • Securities may exit framework due to inclusion in other surveillance measures (LT ASM or ESM)

Compliance Requirements

  • Listed companies must maintain compliance with SEBI (SAST) regulations regarding promoter and non-promoter encumbrance
  • Companies under surveillance subject to additional monitoring and reporting requirements
  • Investors should be aware of enhanced surveillance status when trading these securities

Important Dates

  • August 1, 2025: Effective date for updated surveillance framework
  • July 31, 2025: Circular publication date

Impact Assessment

Positive Development: Four companies successfully moved out of the restrictive surveillance framework, indicating improved compliance with encumbrance regulations. The consolidated list reduction from previous levels to just 5 securities suggests overall improvement in promoter pledge management across listed companies. This framework helps protect investor interests by monitoring companies with high encumbrance levels that could pose governance risks.

Impact Justification

Routine surveillance framework update affecting 9 companies, with positive development of 4 companies moving out of restrictive measures