Description

BSE implements surveillance measure for companies with high promoter and non-promoter encumbrance under SEBI SAST Regulation 28(3), adding Shalimar Paints to the framework effective December 10, 2025.

Summary

BSE has updated the list of securities under 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 December 10, 2025, Shalimar Paints Ltd has been added to this framework. The consolidated list now contains 8 securities under this surveillance measure.

Key Points

  • Shalimar Paints Ltd (Scrip Code: 509874, ISIN: INE849C01026) added to high encumbrance surveillance framework
  • No securities are moving out of the framework in this update
  • Total of 8 securities now under this surveillance measure
  • Framework applies to companies with high promoter and non-promoter share encumbrance
  • Measure implemented under SEBI SAST Regulation 28(3)

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 of shares by promoters and persons in control. The framework is designed to monitor companies where significant shareholding (both promoter and non-promoter) is pledged or encumbered.

Securities Added to Framework

Annexure I - New Addition:

  • Shalimar Paints Ltd (Scrip Code: 509874, ISIN: INE849C01026)

Annexure II - Securities Moving Out:

  • Nil

Annexure III - Consolidated List (8 securities):

  1. B. L. Kashyap and Sons Ltd (532719)
  2. Bedmutha Industries Ltd (533270)*
  3. Brahmaputra Infrastructure Ltd (535693)
  4. Future Market Networks Ltd (533296)
  5. India Nivesh Ltd (501700)
  6. Premier Energy and Infrastructure Ltd (533100)
  7. Shalimar Paints Ltd (509874)
  8. Sudal Industries Ltd (506003)

Note: Securities marked () as per NSE

Compliance Requirements

  • Market participants should note the inclusion of Shalimar Paints Ltd in the high encumbrance surveillance framework
  • Trading in these securities may be subject to additional surveillance measures
  • Investors should exercise due diligence when trading in securities under this framework
  • Companies under this measure must comply with enhanced disclosure requirements regarding share encumbrance

Important Dates

  • Effective Date: December 10, 2025
  • Circular Date: December 9, 2025

Impact Assessment

Market Impact: Medium - The addition of Shalimar Paints to the high encumbrance framework signals regulatory concern about the level of pledged shares in the company. This may lead to:

  • Increased scrutiny from investors and analysts
  • Potential impact on stock liquidity
  • Enhanced monitoring by exchange and regulatory authorities

Investor Impact: Investors holding or considering positions in Shalimar Paints should be aware of the elevated encumbrance levels. High promoter and non-promoter pledging can indicate financial stress and increased risk in adverse market conditions.

Compliance Impact: Companies under this framework face stricter monitoring and disclosure obligations regarding any changes in encumbrance levels of their securities.

Impact Justification

Addition of one security to high encumbrance surveillance framework indicates increased monitoring but limited immediate market impact