Description

BSE introduces surveillance measure for companies with high promoter and non-promoter encumbrance. One security (Setco Automotive Ltd) added to the framework effective January 14, 2026.

Summary

BSE has updated the list of securities subject to 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 updated framework is effective from January 14, 2026. One security has been added to the framework, while no securities are moving out. The consolidated list now contains 9 securities under this surveillance measure.

Key Points

  • Setco Automotive Ltd (Scrip Code: 505075, ISIN: INE878E01021) has been newly added to the high encumbrance surveillance framework
  • No securities are moving out of the framework in this update
  • Total of 9 securities are currently under this surveillance measure
  • Framework is based on SEBI (SAST) Regulation 2011, Reg. 28(3)
  • Measure applies to companies where both promoter and non-promoter shareholding shows high encumbrance

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. The framework monitors securities where there is significant pledging or encumbrance of shares by both promoters and non-promoters, indicating potential financial stress or liquidity concerns.

Compliance Requirements

  • Trading members and market participants should note the updated list of securities under high encumbrance surveillance
  • Enhanced due diligence may be required for transactions in these securities
  • Investors should be aware of the heightened risk profile of companies in this framework
  • Companies listed in the framework should work towards reducing encumbrance levels to exit the surveillance measure

Important Dates

  • Effective Date: January 14, 2026 - Updated surveillance framework becomes applicable
  • Circular Date: January 13, 2026

Impact Assessment

The addition of Setco Automotive Ltd to the high encumbrance framework signals regulatory concerns about the level of pledged shares in the company. This surveillance measure serves as a risk indicator for market participants. Securities under this framework may experience:

  • Increased scrutiny from investors and analysts
  • Potential impact on trading volumes and liquidity
  • Higher risk perception affecting stock valuation
  • Pressure on company management to reduce encumbrance levels

The consolidated list of 9 securities represents companies that require close monitoring due to elevated financial risk profiles. The framework provides transparency to market participants about securities with significant share pledging by both promoter and non-promoter entities.

Securities Under High Encumbrance Surveillance

  1. Brahmaputra Infrastructure Ltd (535693, INE320I01017)
  2. Forbes Precision Tools and Machine Parts Ltd (544186, INE0TT901016)
  3. Future Market Networks Ltd (533296, INE360L01017)
  4. India Nivesh Ltd (501700, INE131H01028)
  5. NR Agarwal Industries Ltd (516082, INE740D01017)
  6. Setco Automotive Ltd (505075, INE878E01021) - Newly Added
  7. Shalimar Paints Ltd (509874, INE849C01026)
  8. Sudal Industries Ltd (506003, INE618D01015)
  9. Tulsyan NEC Ltd (513629, INE463D01016)

Impact Justification

Surveillance measure affecting one new security (Setco Automotive) and nine total securities. Indicates heightened risk monitoring for companies with high pledge/encumbrance levels.