Description

BSE announces surveillance measures for companies with high promoter and non-promoter encumbrance under SEBI (SAST) Regulation 2011, effective January 22, 2026. One security added to the framework.

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) Regulation 2011. Effective January 22, 2026, Indo Tech Transformers Ltd has been added to this framework. No securities are being removed from the measure. The consolidated list now contains 12 securities under this surveillance framework.

Key Points

  • Indo Tech Transformers Ltd (Scrip Code: 532717, ISIN: INE332H01014) has been newly included in the high encumbrance surveillance measure
  • No securities are moving out of the framework at this time
  • The consolidated list maintains 12 securities under surveillance for high promoter and non-promoter encumbrance
  • This measure is implemented under Regulation 28(3) of SEBI (SAST) Regulation 2011
  • The framework tracks companies where significant portions of shareholding are pledged or encumbered

Regulatory Changes

This circular implements surveillance measures under SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, specifically Regulation 28(3) which deals with encumbrance of shares. The framework is designed to monitor companies where high levels of promoter and non-promoter shareholding are pledged, which could indicate financial stress or potential control changes.

Compliance Requirements

  • Listed companies under this framework must comply with enhanced disclosure requirements regarding share encumbrance
  • Market participants should be aware that securities in this list may face additional scrutiny and potential trading restrictions
  • Companies must maintain transparency regarding pledge status of promoter and non-promoter holdings
  • Investors should exercise enhanced due diligence when trading in these securities

Important Dates

  • Effective Date: January 22, 2026
  • Circular Date: January 21, 2026

Impact Assessment

Market Impact: The addition of Indo Tech Transformers Ltd to the surveillance framework signals concerns about share encumbrance levels. This typically results in increased investor caution and potential impact on stock liquidity and valuation.

Trading Impact: Securities under this measure may experience reduced trading volumes and increased volatility as market participants factor in the heightened risk associated with high encumbrance levels.

Investor Considerations: The consolidated list of 12 securities represents companies requiring heightened monitoring. High promoter encumbrance can indicate financial stress, potential margin calls, or forced sales, making these securities higher risk investments.

Securities Under Surveillance (Consolidated List)

  1. Brahmaputra Infrastructure Ltd (535693)
  2. Forbes Precision Tools and Machine Parts Ltd (544186)
  3. Future Market Networks Ltd (533296)
  4. India Finsec Ltd (535667)
  5. India Nivesh Ltd (501700)
  6. Indo Tech Transformers Ltd (532717) - Newly Added
  7. NR Agarwal Industries Ltd (516082)
  8. Setco Automotive Ltd (505075)
  9. Shalimar Paints Ltd (509874)
  10. Sudal Industries Ltd (506003)
  11. Tulsyan NEC Ltd (513629)
  12. Visa Steel Ltd (532721)

Impact Justification

Surveillance measure affects one newly added security and maintains framework for 12 existing securities. Impacts trading and investor perception for companies with high pledge levels.