Description

BSE adds India Nivesh Ltd to the high encumbrance surveillance framework effective November 20, 2025, under SEBI SAST Regulation 2011.

Summary

BSE has issued a surveillance measure update regarding companies with high promoter and non-promoter encumbrance as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011. Effective November 20, 2025, India Nivesh Ltd (Scrip Code: 501700, ISIN: INE131H01028) has been added to this surveillance framework. No securities are being removed from the framework. The consolidated list now includes four securities under enhanced monitoring.

Key Points

  • One new security added to high encumbrance surveillance framework effective November 20, 2025
  • India Nivesh Ltd (501700) newly included due to high promoter and non-promoter encumbrance levels
  • No securities moving out of the framework in this update
  • Consolidated list comprises 4 securities: Brahmaputra Infrastructure Ltd, India Finsec Ltd, India Nivesh Ltd, and NR Agarwal Industries Ltd
  • Framework applies under Regulation 28(3) of SEBI (SAST) Regulation 2011
  • Securities may exit this framework if included in LT ASM, ESM, or TT frameworks

Regulatory Changes

This circular implements surveillance measures under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, which deals with encumbrance disclosure requirements. The framework identifies companies where both promoter and non-promoter shareholdings have high levels of encumbrance (pledges, liens, or other charges), warranting enhanced market surveillance.

Compliance Requirements

  • Securities under this framework are subject to enhanced surveillance measures by BSE
  • Market participants trading in these securities should be aware of the high encumbrance levels
  • Companies in this list must comply with ongoing disclosure requirements under SEBI (SAST) Regulation 2011
  • Investors should exercise caution when trading in securities with high promoter and non-promoter encumbrance

Important Dates

  • Effective Date: November 20, 2025 - India Nivesh Ltd enters the high encumbrance surveillance framework
  • Circular Date: November 19, 2025

Impact Assessment

Market Impact: The inclusion of India Nivesh Ltd in this surveillance framework signals regulatory concerns about high levels of share pledging by both promoters and non-promoters. This typically results in increased trading restrictions, lower liquidity, and heightened investor caution. The consolidated list of four securities indicates ongoing market surveillance of companies with elevated encumbrance risks.

Trading Impact: Securities under this framework may experience reduced trading volumes, wider bid-ask spreads, and increased volatility as market participants factor in the encumbrance-related risks. The surveillance designation serves as a warning signal to investors about potential financial stress or governance concerns at these companies.

Investor Considerations: High encumbrance levels indicate that significant portions of shareholdings are pledged as collateral, which could lead to forced selling if pledged shares are invoked by lenders. This creates downside price risk and potential corporate governance issues.

Impact Justification

Addition of one new security to high encumbrance surveillance framework; consolidated list maintains four securities under enhanced monitoring due to promoter and non-promoter pledge concerns