Description

BSE circular regarding securities moving in and out of surveillance measures for high promoter encumbrance effective November 06, 2025. Seven securities moved out of the framework while one security remains under surveillance.

Summary

BSE has issued an update on the applicability of surveillance measures for companies with high promoter encumbrance as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011. Effective November 06, 2025, no new securities are being added to the surveillance framework, while seven securities are moving out of the high encumbrance framework. Only one security (Share India Securities Ltd) remains in the consolidated list under this surveillance measure.

Key Points

  • No new securities shortlisted for surveillance measure in respect of high encumbrance effective November 06, 2025
  • Seven securities moving out of the high encumbrance surveillance framework
  • Five companies removed: AAVAS Financiers Limited (2 scrip codes), MSP Steel & Power Ltd, Nuvama Wealth Management Limited (2 scrip codes), Sar Auto Products Limited, and Tilaknagar Industries Ltd
  • Share India Securities Ltd remains the only security in the consolidated surveillance list
  • Some securities moved out due to inclusion in other surveillance frameworks (LTASM, STASM, or high Promoter and non-Promoter Encumbrance Framework)

Regulatory Changes

This circular updates the list of securities under surveillance for high promoter encumbrance as mandated by SEBI (SAST) Regulation 2011, Regulation 28(3). The framework monitors companies where promoters have pledged significant portions of their shareholding, which poses potential risks to market stability and corporate governance.

Compliance Requirements

  • Market participants should note the updated list of securities under high encumbrance surveillance
  • Trading members and investors should be aware that securities may face additional surveillance measures or restrictions
  • Companies moving out of this framework may have either improved their encumbrance position or been moved to other surveillance categories
  • Share India Securities Ltd remains subject to surveillance measures as the only security in the consolidated list

Important Dates

  • Effective Date: November 06, 2025 - Updated surveillance measure list becomes applicable
  • Circular Date: November 04, 2025

Impact Assessment

The removal of seven securities from the high encumbrance surveillance framework indicates improved compliance or migration to other surveillance categories for these companies. This is generally positive for AAVAS Financiers, MSP Steel & Power, Nuvama Wealth Management, Sar Auto Products, and Tilaknagar Industries as it may reduce trading restrictions. However, some securities moved to other surveillance frameworks (LTASM or STASM) which may continue to have trading implications. Share India Securities remains under focused surveillance due to high encumbrance levels, potentially facing trading restrictions or enhanced monitoring requirements.

Impact Justification

Regulatory surveillance measure affecting seven securities moving out and one remaining under high encumbrance framework, impacting trading and compliance for affected companies