Description
BSE announces surveillance measures for securities with high promoter and non-promoter encumbrance as per SEBI SAST Regulation 28(3), effective December 18, 2025. NR Agarwal Industries added to the framework.
Summary
BSE has implemented surveillance measures for companies with high levels of promoter and non-promoter share encumbrance under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011. One new security (NR Agarwal Industries Ltd) has been added to this framework effective December 18, 2025, bringing the total consolidated list to 9 securities. No securities are being removed from this measure.
Key Points
- NR Agarwal Industries Ltd (Scrip Code: 516082, ISIN: INE740D01017) newly added to high encumbrance surveillance framework
- Zero securities moving out of the framework in this update
- Total of 9 securities currently under this surveillance measure
- Framework targets companies with high promoter and non-promoter pledged shares
- Measure enforced under SEBI (SAST) Regulation 28(3)
- Consolidated list includes companies across various sectors with significant shareholding encumbrance
Regulatory Changes
This circular implements ongoing surveillance under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011, specifically Regulation 28(3) which governs disclosure requirements for encumbered shares. The framework is designed to monitor and restrict trading in securities where both promoter and non-promoter shareholdings show high levels of pledge/encumbrance, indicating potential financial stress or elevated risk.
Compliance Requirements
- Trading members must be aware of securities under this surveillance framework
- Enhanced monitoring required for trades in these 9 securities
- Investors should exercise heightened caution when trading these securities
- Companies on this list must comply with disclosure requirements under SEBI (SAST) Regulation 28(3)
- Market participants should review the consolidated list and adjust risk management practices accordingly
Important Dates
- Effective Date: December 18, 2025 - New additions and surveillance measures take effect
- Circular Date: December 17, 2025
Impact Assessment
Market Impact: High encumbrance levels indicate potential financial distress and elevated risk of forced selling if lenders invoke pledges. This can lead to sharp price volatility and reduced liquidity.
Trading Impact: Securities under this framework typically face:
- Additional surveillance and monitoring
- Potential trading restrictions or circuit breakers
- Reduced investor confidence and participation
- Higher bid-ask spreads due to risk perception
Investor Risk: Shareholders in these companies face:
- Elevated risk of promoter stake dilution through pledge invocation
- Potential change in management control
- Limited liquidity for position exits
- Heightened volatility during market stress
Complete List of Affected Securities:
- B. L. Kashyap and Sons Ltd (532719)
- Bedmutha Industries Ltd (533270)
- Brahmaputra Infrastructure Ltd (535693)
- Future Market Networks Ltd (533296)
- India Nivesh Ltd (501700)
- NR Agarwal Industries Ltd (516082) - NEW ADDITION
- Premier Energy and Infrastructure Ltd (533100)
- Shalimar Paints Ltd (509874)
- Sudal Industries Ltd (506003)
Impact Justification
High encumbrance levels pose significant risk to investors and market stability. Surveillance measures restrict trading and liquidity for affected securities, directly impacting investor ability to exit positions.