Description

BSE circular regarding surveillance measures for companies with high promoter and non-promoter encumbrance, adding B. L. Kashyap and Sons Ltd to the framework effective November 24, 2025.

Summary

BSE has issued a circular regarding the surveillance measure for companies with high Promoter as well as non-Promoter ‘Encumbrance’ as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011. Effective November 24, 2025, B. L. Kashyap and Sons Ltd (Scrip Code: 532719, ISIN: INE350H01032) has been added to this surveillance framework. No securities are being removed from the framework. The consolidated list now contains 6 securities under this measure.

Key Points

  • One new security added to high encumbrance surveillance: B. L. Kashyap and Sons Ltd
  • No securities removed from the framework
  • Changes effective from November 24, 2025
  • Framework monitors companies with high promoter and non-promoter pledge levels
  • Consolidated list includes 6 securities total under this measure
  • Securities can move out if included in other frameworks (LT ASM, ESM, or TT)

Regulatory Changes

This circular implements SEBI (SAST) Regulation 2011, Regulation 28(3), which requires monitoring of companies where significant shareholding (promoter or non-promoter) is encumbered or pledged. The surveillance measure is designed to protect investor interests when high levels of share encumbrance exist, as this can indicate financial stress or increased risk.

Compliance Requirements

  • Market participants should note the inclusion of B. L. Kashyap and Sons Ltd in this surveillance framework
  • Trading members and investors should exercise appropriate caution when dealing with securities under this measure
  • Companies under this framework may face additional disclosure and monitoring requirements
  • The exchange will apply enhanced surveillance on the identified security

Important Dates

  • Effective Date: November 24, 2025 - B. L. Kashyap and Sons Ltd enters the high encumbrance surveillance framework
  • Circular Date: November 21, 2025

Impact Assessment

The addition of B. L. Kashyap and Sons Ltd to the high encumbrance framework signals regulatory concern about the level of pledged shares in the company. This measure:

  • May impact liquidity and trading volumes in the affected security
  • Serves as a risk indicator for investors regarding high pledge levels
  • Could lead to increased volatility or cautious investor sentiment
  • May result in stricter margin requirements or trading restrictions
  • Reflects BSE’s proactive risk management approach

Consolidated Securities List: The framework now monitors 6 securities: B. L. Kashyap and Sons Ltd, Brahmaputra Infrastructure Ltd, India Finsec Ltd, India Nivesh Ltd, NR Agarwal Industries Ltd, and Sudal Industries Ltd.

Exit Criteria: Securities can move out of this framework if they are included in other surveillance measures such as Long Term Additional Surveillance Measure (LT ASM), Enhanced Surveillance Measure (ESM), or Trade-to-Trade (TT) framework.

Impact Justification

Adds one security (B. L. Kashyap and Sons Ltd) to high encumbrance surveillance framework, indicating elevated risk monitoring for this specific stock. Limited immediate market impact but signals heightened regulatory scrutiny.