Description

BSE circular listing securities subject to surveillance measures due to high promoter and non-promoter encumbrance under SEBI SAST Regulations, effective December 3, 2025.

Summary

BSE has issued a circular regarding surveillance measures for securities with high promoter and non-promoter encumbrance as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011. Effective December 3, 2025, one security (Future Market Networks Ltd) has been added to this framework, while no securities are being removed. The consolidated list now contains six companies subject to these enhanced surveillance measures.

Key Points

  • Future Market Networks Ltd (Scrip Code: 533296, ISIN: INE360L01017) added to high encumbrance surveillance framework
  • No securities are being removed from the framework effective December 3, 2025
  • Total of 6 securities currently under this surveillance measure
  • Framework applies to companies with high promoter as well as non-promoter encumbrance levels
  • Regulatory basis: Regulation 28(3) of SEBI (SAST) Regulation 2011

Regulatory Changes

This circular implements surveillance measures under SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, specifically Regulation 28(3) which deals with disclosure of encumbrance. The framework identifies and monitors securities where both promoter and non-promoter shareholdings show high levels of encumbrance (pledge, lien, or other security interests), indicating elevated financial risk.

Compliance Requirements

  • Companies under this framework must comply with enhanced disclosure requirements regarding encumbrance of shares
  • Investors should be aware that these securities are under special surveillance due to high encumbrance levels
  • Trading members and market participants should exercise heightened caution when dealing in these securities
  • Companies must maintain compliance with SEBI SAST Regulation 2011 disclosure norms

Important Dates

  • Effective Date: December 3, 2025 - New measures take effect for Future Market Networks Ltd
  • Circular Issue Date: December 2, 2025

Impact Assessment

Market Impact: High encumbrance levels indicate that promoter and non-promoter holdings are pledged as collateral, typically for loans or other financial obligations. This creates potential risks:

  1. Liquidity Risk: High encumbrance may lead to forced selling if pledged shares are invoked due to loan defaults
  2. Price Volatility: These securities may experience increased volatility due to elevated risk perception
  3. Investor Confidence: Inclusion in this framework signals financial stress, potentially affecting investor sentiment
  4. Trading Restrictions: Enhanced surveillance may lead to additional trading controls or restrictions

Affected Companies: The consolidated list includes B.L. Kashyap and Sons Ltd, Bedmutha Industries Ltd, Brahmaputra Infrastructure Ltd, Future Market Networks Ltd, India Nivesh Ltd, and Sudal Industries Ltd. Bedmutha Industries is also under NSE surveillance as indicated by the asterisk.

Operational Impact: Market participants should conduct enhanced due diligence before trading in these securities and monitor for any further regulatory actions or changes in encumbrance levels.

Impact Justification

High encumbrance levels pose significant risk to shareholders. Trading restrictions under SEBI SAST regulations directly impact liquidity and investor confidence in affected securities.