Description

BSE announces updates to surveillance measures for companies with high encumbrance as per Reg. 28(3) of SEBI (SAST) Regulation 2011, effective September 3, 2025.

Summary

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

Key Points

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

Regulatory Changes

The surveillance measure applies to companies with high encumbrance as defined under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011. Securities are added or removed based on their encumbrance levels and may transition to other surveillance frameworks like Long-Term Additional Surveillance Measure (LTASM) or Short-Term Additional Surveillance Measure (STASM).

Compliance Requirements

Market participants and investors should note the updated surveillance status of these securities. Securities under this framework may be subject to additional monitoring and trading restrictions. Brokers and trading members should update their systems to reflect the changes effective September 3, 2025.

Important Dates

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

Impact Assessment

The surveillance measures may impact liquidity and trading patterns for the affected securities. Securities newly added to the framework may experience reduced trading volumes and increased price volatility. Securities removed from the framework may see improved market participation. Investors holding these securities should be aware of the potential impact on trading conditions and market dynamics.

Impact Justification

Surveillance measures impact trading but are routine regulatory updates affecting specific securities based on encumbrance levels