Description

BSE circular implementing surveillance measures for companies with high encumbrance levels under SEBI (SAST) Regulation 2011, effective December 3, 2025.

Summary

BSE has issued a circular regarding surveillance measures 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. The framework will be effective from December 3, 2025. One new security has been added to the surveillance list while no securities are being removed. The consolidated list now contains 6 securities under this framework.

Key Points

  • One security added to the high encumbrance surveillance framework: Future Market Networks Ltd (Scrip Code: 533296, ISIN: INE360L01017)
  • No securities are being removed from the framework
  • Total of 6 securities currently under the high encumbrance surveillance measure
  • Framework based on SEBI (SAST) Regulation 2011, Regulation 28(3)
  • Effective date: December 3, 2025

Regulatory Changes

This circular implements ongoing surveillance measures under SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, specifically Regulation 28(3) which deals with encumbrance disclosure requirements. The framework is designed to monitor companies where both promoter and non-promoter shareholdings have high levels of encumbrance, which could pose risks to market stability and investor interests.

Compliance Requirements

  • Companies under this framework must comply with enhanced disclosure requirements regarding encumbrance of shares
  • Market participants should be aware that these securities are under special surveillance due to high encumbrance levels
  • Trading members and investors should exercise appropriate caution while dealing in these securities
  • Companies must maintain compliance with SEBI (SAST) Regulation 28(3) regarding encumbrance disclosure

Important Dates

  • Effective Date: December 3, 2025 - New securities enter the surveillance framework and consolidated list becomes applicable

Impact Assessment

Market Impact: The addition of Future Market Networks Ltd to the surveillance framework may lead to increased scrutiny and potentially reduced liquidity in the security. The high encumbrance levels indicate that a significant portion of shares are pledged or encumbered, which could pose risks in case of default or margin calls.

Investor Impact: Investors in the 6 affected securities should be aware of the elevated risk profile due to high encumbrance. This could affect stock valuations and trading volumes. The surveillance measure serves as a warning indicator for retail and institutional investors.

Operational Impact: The existing 5 securities continue under surveillance, indicating persistent encumbrance issues. Market participants should implement appropriate risk management measures when dealing with these securities.

Securities Under Surveillance (Consolidated List)

  1. B. L. Kashyap and Sons Ltd - Scrip Code: 532719, ISIN: INE350H01032
  2. Bedmutha Industries Ltd - Scrip Code: 533270, ISIN: INE844K01012 (*)
  3. Brahmaputra Infrastructure Ltd - Scrip Code: 535693, ISIN: INE320I01017
  4. Future Market Networks Ltd (New Addition) - Scrip Code: 533296, ISIN: INE360L01017
  5. India Nivesh Ltd - Scrip Code: 501700, ISIN: INE131H01028
  6. Sudal Industries Ltd - Scrip Code: 506003, ISIN: INE618D01015

Note: () as per NSE indicates alignment with NSE surveillance framework*

Impact Justification

Surveillance framework affects 6 securities with high encumbrance levels, with 1 new addition (Future Market Networks Ltd). This is a regulatory compliance measure with moderate market impact.