Measure in respect of companies with high Promoter as well as non-Promoter 'Encumbrance' as per Reg. 28(3) of SEBI (SAST) Regulation 2011

Description

BSE adds NR Agarwal Industries Ltd to the list of securities under surveillance for high promoter and non-promoter encumbrance effective November 14, 2025.

Summary

BSE has updated the list of securities under surveillance measures for companies with high promoter and non-promoter encumbrance as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011. One security, NR Agarwal Industries Ltd, has been added to this framework effective November 14, 2025. No securities are being removed from the framework.

Key Points

• NR Agarwal Industries Ltd (Scrip Code: 516082, ISIN: INE740D01017) added to high encumbrance surveillance list
• No securities are moving out of the framework in this update
• Consolidated list now includes 2 securities: India Finsec Ltd and NR Agarwal Industries Ltd
• Measure is based on Regulation 28(3) of SEBI (SAST) Regulation 2011
• Changes effective from November 14, 2025

Regulatory Changes

This circular implements surveillance measures under SEBI (SAST) Regulation 2011, specifically Regulation 28(3), which deals with disclosure requirements for encumbrance of shares. The framework monitors companies where both promoter and non-promoter shareholdings show high levels of encumbrance (pledging/hypothecation).

Compliance Requirements

• Market participants must note the inclusion of NR Agarwal Industries Ltd in the high encumbrance surveillance framework
• Trading members and investors should exercise additional caution when dealing with securities under this framework
• Companies on this list are subject to enhanced monitoring and disclosure requirements

Important Dates

• Effective Date: November 14, 2025 - NR Agarwal Industries Ltd comes under high encumbrance surveillance measures

Impact Assessment

The addition of NR Agarwal Industries Ltd to this surveillance framework indicates elevated risk due to high levels of share encumbrance. This typically impacts investor confidence and may result in increased volatility or reduced liquidity for the affected security. The framework serves as a risk alert mechanism for market participants. The consolidated list of only 2 securities suggests relatively limited prevalence of this specific risk factor in the broader market.

Impact Justification

Addition of one security to high encumbrance surveillance framework affects trading and investor sentiment for specific stocks, but limited market-wide impact