Description

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

Summary

BSE has updated the list of securities subject to surveillance measures for companies with high promoter and non-promoter encumbrance as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011. Effective December 10, 2025, Shalimar Paints Ltd has been added to this framework. No securities are being removed from the measure at this time. The consolidated list now includes 8 companies under enhanced surveillance.

Key Points

  • Shalimar Paints Ltd (Scrip Code: 509874, ISIN: INE849C01026) added to encumbrance surveillance framework
  • Effective date: December 10, 2025
  • No securities are exiting the framework in this update
  • Total 8 companies currently under this surveillance measure
  • Framework based on SEBI SAST Regulation 28(3) for high encumbrance levels

Regulatory Framework

This measure is implemented under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011, which addresses situations where companies have high levels of promoter and non-promoter share encumbrance. The surveillance framework is designed to monitor and manage risks associated with pledged shareholdings.

Securities Added (Annexure I)

New Addition:

  1. Shalimar Paints Ltd - Scrip Code: 509874, ISIN: INE849C01026

Securities Removed (Annexure II)

No securities are moving out of the framework as of this update. Securities may exit this framework if they are included in other surveillance measures such as:

  • LT ASM (Long Term Additional Surveillance Measure)
  • ESM (Enhanced Surveillance Measure)
  • TT (Trade-to-Trade) framework

Consolidated List (Annexure III)

All 8 securities currently under encumbrance surveillance:

  1. B. L. Kashyap and Sons Ltd (532719 / INE350H01032)
  2. Bedmutha Industries Ltd* (533270 / INE844K01012)
  3. Brahmaputra Infrastructure Ltd (535693 / INE320I01017)
  4. Future Market Networks Ltd (533296 / INE360L01017)
  5. India Nivesh Ltd (501700 / INE131H01028)
  6. Premier Energy and Infrastructure Ltd (533100 / INE429K01012)
  7. Shalimar Paints Ltd (509874 / INE849C01026) - NEW
  8. Sudal Industries Ltd (506003 / INE618D01015)

*Note: Bedmutha Industries Ltd is marked with asterisk as per NSE coordination.

Important Dates

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

Impact Assessment

Trading Impact:

  • Securities under this framework face enhanced surveillance and monitoring
  • May have restrictions on trading mechanisms or additional disclosure requirements
  • Investors should exercise caution when trading these securities

Market Implications:

  • Addition of Shalimar Paints indicates elevated encumbrance levels detected by regulators
  • High promoter/non-promoter pledging can signal financial stress or liquidity concerns
  • Framework provides early warning system for potential corporate governance issues

Investor Considerations:

  • Enhanced due diligence recommended for all 8 securities in the consolidated list
  • Monitor for updates on encumbrance levels and potential exits from the framework
  • Be aware that trading in these securities may involve higher risk

Impact Justification

Addition of one security to encumbrance surveillance framework affects trading conditions for Shalimar Paints. The consolidated list shows 8 companies under this measure, indicating targeted regulatory oversight for high encumbrance situations.