Description

BSE announces updated list of securities under surveillance due to high encumbrance levels as per SEBI (SAST) Regulation 2011, effective September 3, 2025.

Summary

BSE has updated the list of securities under surveillance measures due to high encumbrance levels as per Regulation 28(3) of SEBI (SAST) Regulations 2011. The changes include 4 securities being added to surveillance and 7 securities being removed from the framework, effective September 3, 2025.

Key Points

  • 4 securities added to high encumbrance surveillance framework: AAVAS Financiers Ltd (including T+0 segment), Indo Tech Transformers Ltd, and Steel Exchange India Ltd
  • 7 securities removed from surveillance: Genus Power Infrastructures, MSP Steel & Power, NRB Bearings, Nuvama Wealth Management, and Share India Securities
  • Total of 6 securities remain in the consolidated surveillance list
  • Some securities moved out due to inclusion in other frameworks (LTASM/STASM)

Regulatory Changes

Implementation of updated surveillance measures under Regulation 28(3) of SEBI (SAST) Regulations 2011 for companies with high encumbrance levels. The framework monitors companies where promoter shareholding is significantly pledged or encumbered.

Compliance Requirements

  • Market participants must note the updated list of securities under surveillance
  • Enhanced monitoring and compliance requirements apply to securities in the framework
  • Trading members should ensure appropriate risk management for listed securities
  • Companies must continue to disclose encumbrance details as per SEBI requirements

Important Dates

  • Effective Date: September 3, 2025
  • Circular Issue Date: September 2, 2025

Impact Assessment

The surveillance measures will impact trading in affected securities through enhanced monitoring and potential trading restrictions. Securities added to the framework may experience reduced liquidity and increased volatility. Securities removed from surveillance may see improved market sentiment and trading activity. The framework ensures investor protection by monitoring companies with high promoter pledging levels.

Impact Justification

High encumbrance surveillance directly affects trading patterns and investor sentiment for listed securities