Description

BSE circular detailing securities shortlisted and consolidated list under high encumbrance framework as per SEBI SAST Regulation 28(3), effective January 20, 2026.

Summary

BSE has updated the list of securities subject to surveillance measures for companies with high promoter and non-promoter encumbrance under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011. The measure is effective from January 20, 2026, with two securities newly added and none removed from the framework.

Key Points

  • Two securities added to high encumbrance framework: India Finsec Ltd (535667) and Visa Steel Ltd (532721)
  • No securities moving out of the framework in this update
  • Total of 11 securities now under this surveillance measure
  • Framework targets companies where significant shareholding is pledged or encumbered
  • Effective date: January 20, 2026

Regulatory Changes

This circular implements surveillance measures under SEBI (SAST) Regulation 28(3), which addresses situations where both promoter and non-promoter holdings have high levels of encumbrance. The measure aims to protect investor interests when significant shareholding is pledged, which could pose risks during market volatility or if pledged shares are invoked.

Compliance Requirements

  • Trading members and market participants must note the inclusion of these securities under high encumbrance surveillance
  • Enhanced monitoring and risk management protocols may apply to trading in these securities
  • Investors should be aware of the elevated risk profile of these stocks due to high pledge levels
  • Companies on this list must comply with enhanced disclosure requirements regarding encumbrance status

Important Dates

  • Effective Date: January 20, 2026 - High encumbrance surveillance measures come into effect for newly added securities
  • Circular Date: January 19, 2026

Impact Assessment

The addition of two more securities to the high encumbrance list reflects ongoing concerns about pledged shareholdings in certain companies. This surveillance measure typically results in:

  • Liquidity Impact: Potential reduction in trading volumes as institutional investors may avoid or reduce exposure
  • Price Pressure: Negative sentiment due to perceived financial stress or funding constraints
  • Risk Categorization: Higher risk perception among market participants
  • Margin Requirements: Possible increase in margin requirements by brokers

Newly Added Securities:

  1. India Finsec Ltd (INE474O01010) - Scrip Code 535667
  2. Visa Steel Ltd (INE286H01012) - Scrip Code 532721

Complete List of 11 Securities Under Surveillance: Brahmaputra Infrastructure Ltd, Forbes Precision Tools and Machine Parts Ltd, Future Market Networks Ltd, India Finsec Ltd, India Nivesh Ltd, NR Agarwal Industries Ltd, Setco Automotive Ltd, Shalimar Paints Ltd, Sudal Industries Ltd, Tulsyan NEC Ltd, and Visa Steel Ltd.

Investors should exercise caution when trading these securities and be aware of the elevated risks associated with high promoter and non-promoter encumbrance levels.

Impact Justification

High encumbrance surveillance measure affects 11 securities with 2 new additions, indicating significant pledging concerns that could impact market stability and investor confidence in these stocks.