Description

BSE implements surveillance measures for companies with high encumbrance as per SEBI regulation, affecting 9 securities with additions and removals effective August 5, 2025.

Summary

BSE has updated its surveillance measures for companies with high ‘Encumbrance’ as per Regulation 28(3) of SEBI (SAST) Regulation 2011, effective August 5, 2025. The circular adds 2 new securities to the surveillance list while removing 5 securities, resulting in a consolidated list of 9 securities under enhanced monitoring.

Key Points

  • 2 securities added to high encumbrance surveillance: MSP Steel & Power Limited and RattanIndia Power Limited
  • 5 securities removed from surveillance: Apollo Micro Systems, GMR Power and Urban Infra, Hindustan Zinc, and Sagar Cements
  • Total 9 securities currently under high encumbrance surveillance framework
  • Some securities moved to other surveillance frameworks (LTASM, STASM, or high Promoter/non-Promoter encumbrance)
  • Measures apply to both BSE and NSE listed securities where applicable

Regulatory Changes

Implementation of surveillance measures under SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, specifically targeting companies with high levels of share encumbrance that may impact market stability and investor protection.

Compliance Requirements

  • Enhanced monitoring and reporting requirements for listed companies under surveillance
  • Stricter disclosure norms regarding encumbrance of shares
  • Additional compliance measures as per SEBI (SAST) regulations
  • Market participants must adhere to special trading conditions for affected securities

Important Dates

  • Effective Date: August 5, 2025
  • All surveillance measures become applicable from the specified effective date

Impact Assessment

The surveillance measures will result in enhanced monitoring of the affected securities, potentially impacting trading volumes and liquidity. Companies under surveillance may face additional compliance burdens and closer regulatory scrutiny. The removal of several securities indicates improved compliance or transfer to other appropriate surveillance frameworks, while new additions suggest emerging concerns requiring enhanced oversight.

Impact Justification

Affects trading and compliance for multiple listed companies under enhanced surveillance framework