Description

BSE circular regarding securities shortlisted under high promoter and non-promoter encumbrance measures, with Sudal Industries Ltd added to the framework effective November 21, 2025.

Summary

BSE has issued a circular regarding the surveillance measure for 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 21, 2025, Sudal Industries Ltd (Scrip Code: 506003, ISIN: INE618D01015) has been added to this surveillance framework. No securities are moving out of the framework. The consolidated list now contains 5 securities under this measure.

Key Points

  • One security added to the high encumbrance surveillance framework: Sudal Industries Ltd
  • No securities are being removed from the framework
  • The measure is based on SEBI (SAST) Regulation 2011, Regulation 28(3)
  • Framework applies to companies with high promoter as well as non-promoter encumbrance
  • Total of 5 securities now under this surveillance measure

Regulatory Changes

This circular implements the surveillance framework mandated under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011. The regulation requires monitoring of companies where there is high encumbrance of shares held by both promoters and non-promoters.

Compliance Requirements

  • Trading members and investors should be aware of the securities under this surveillance framework
  • Enhanced monitoring and disclosure requirements may apply to the listed securities
  • Market participants should exercise additional due diligence when trading in these securities
  • Companies under this framework must comply with disclosure requirements related to share encumbrance

Important Dates

  • Effective Date: November 21, 2025
  • Circular Date: November 20, 2025

Impact Assessment

Market Impact: The addition of Sudal Industries Ltd to the high encumbrance surveillance framework indicates significant pledging or encumbrance of shares by both promoters and non-promoters. This typically signals financial stress or liquidity concerns and may impact investor confidence in the security.

Operational Impact: Trading in the affected security will continue but under enhanced surveillance. Market participants should be cautious and conduct thorough due diligence before taking positions.

Consolidated List: The framework now covers 5 securities total:

  1. Brahmaputra Infrastructure Ltd (Scrip Code: 535693)
  2. India Finsec Ltd (Scrip Code: 535667)
  3. India Nivesh Ltd (Scrip Code: 501700)
  4. NR Agarwal Industries Ltd (Scrip Code: 516082)
  5. Sudal Industries Ltd (Scrip Code: 506003)

Risk Indicator: Securities under this measure are flagged for high encumbrance levels, which represents elevated financial risk and potential governance concerns.

Impact Justification

Addition of one security to encumbrance surveillance framework. Limited immediate market impact but signals compliance concerns for affected company.