Description

BSE updates surveillance framework for companies with high promoter encumbrance under SEBI SAST Regulation 28(3), with 7 securities moving out and 1 remaining under surveillance effective November 06, 2025.

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) Regulations, 2011. Effective November 06, 2025, seven securities are moving out of the surveillance framework, while no new securities are being added. Only one security (Share India Securities Ltd) remains under this surveillance measure.

Key Points

  • No new securities added to high encumbrance surveillance framework
  • 7 securities (9 scrip codes including different series) moving out of surveillance effective November 06, 2025
  • Only 1 security remains under surveillance: Share India Securities Ltd (Scrip Code: 540725, ISIN: INE932X01026)
  • Securities moved out due to various reasons including inclusion in LTASM, STASM, or high Promoter/non-Promoter Encumbrance Framework
  • Surveillance framework monitors companies where promoter shareholding pledged exceeds thresholds under SEBI SAST Regulations

Securities Moving Out

Companies Exiting Surveillance:

  1. AAVAS Financiers Limited (Scrip Codes: 541988, 141988, ISIN: INE216P01012)
  2. MSP Steel & Power Ltd (Scrip Code: 532650, ISIN: INE752G01015)
  3. Nuvama Wealth Management Limited (Scrip Codes: 543988, 143988, ISIN: INE531F01015)
  4. Sar Auto Products Limited (Scrip Code: 538992, ISIN: INE002E01010)
  5. Tilaknagar Industries Ltd (Scrip Code: 507205, ISIN: INE133E01013)

Reasons for Exit:

  • Some securities moved to Long-Term Additional Surveillance Measure (LTASM) Framework
  • Some securities moved to Short-Term Additional Surveillance Measure (STASM) Framework
  • Some securities moved to high Promoter and non-Promoter Encumbrance Framework

Regulatory Changes

This circular represents routine monitoring and adjustment of the surveillance framework under SEBI (SAST) Regulation 28(3), which requires disclosure of encumbrance of shares by promoters and persons in control. The surveillance measure is designed to protect investor interests by closely monitoring companies where significant promoter holdings are pledged.

Compliance Requirements

  • Share India Securities Ltd continues to be subject to enhanced surveillance measures applicable to securities under high encumbrance framework
  • Companies moving out of this framework may still be subject to other surveillance measures (LTASM, STASM, or combined encumbrance frameworks)
  • Listed companies must continue to comply with disclosure requirements under Regulation 28(3) of SEBI SAST Regulations regarding promoter pledges
  • Market participants should take note of the surveillance status when trading in these securities

Important Dates

  • Effective Date: November 06, 2025
  • Circular Date: November 04, 2025

Impact Assessment

Market Impact:

  • Positive for 7 Securities: Exit from high encumbrance surveillance indicates improved pledging levels or transfer to different surveillance categories
  • Neutral Overall Market Impact: The movement of securities between surveillance frameworks is part of regular monitoring with minimal disruption
  • Liquidity Considerations: Securities under surveillance may face trading restrictions or additional margin requirements

Operational Impact:

  • Trading members and market participants should update their surveillance lists
  • Reduced surveillance on 7 securities may improve trading sentiment and liquidity
  • Share India Securities Ltd remains the only security requiring continued monitoring under this specific framework

Investor Impact:

  • Investors should be aware that securities moving out of one surveillance framework may be subject to other measures
  • Reduced number of securities under high encumbrance surveillance (from 8 to 1) suggests overall improvement in promoter pledging levels
  • Continued vigilance required for Share India Securities Ltd due to ongoing surveillance status

Impact Justification

Routine surveillance update affecting 7 securities moving out of high encumbrance framework, with only 1 security remaining under surveillance, indicating improved pledging conditions for most companies