Description
BSE announces surveillance measures for companies with high promoter and non-promoter encumbrance. Forbes & Company Ltd added to the framework effective January 30, 2026.
Summary
BSE has updated the list of securities under 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. Forbes & Company Ltd (Scrip Code: 502865, ISIN: INE518A01013) has been added to this framework effective January 30, 2026. The consolidated list now includes 14 companies under this surveillance measure.
Key Points
- Forbes & Company Ltd newly added to high encumbrance surveillance framework
- No securities are moving out of the framework in this update
- Total of 14 companies currently under this surveillance measure
- Framework applies to companies with high levels of pledged shares by both promoters and non-promoters
- Effective date: January 30, 2026
Regulatory Changes
This circular implements surveillance measures under SEBI (SAST) Regulation 2011, Regulation 28(3), which deals with encumbrance of shares. The framework is designed to monitor companies where significant shareholding (both promoter and non-promoter) is pledged or encumbered, indicating potential financial stress or risk.
Compliance Requirements
- Companies under this framework face enhanced surveillance and monitoring
- Trading in these securities may be subject to additional restrictions or scrutiny
- Market participants should exercise caution when trading in listed securities
- Companies must comply with ongoing disclosure requirements regarding encumbrance levels
Important Dates
- Effective Date: January 30, 2026
- Circular Date: January 29, 2026
Impact Assessment
Market Impact: High encumbrance levels indicate potential financial distress and risk of forced selling if pledged shares are invoked. This can lead to increased volatility and downward price pressure.
Investor Impact: Investors in Forbes & Company Ltd and the 14 listed companies should be aware of elevated risk profiles. High encumbrance reduces promoter flexibility and may signal liquidity constraints.
Trading Impact: Securities under this framework may experience reduced liquidity and higher trading spreads as market participants factor in additional risk.
Complete List of Securities Under Framework
- Brahmaputra Infrastructure Ltd (535693)
- Forbes & Company Ltd (502865) - Newly Added
- Forbes Precision Tools and Machine Parts Ltd (544186)
- Future Market Networks Ltd (533296)
- Gayatri Highways Ltd (541546)
- India Finsec Ltd (535667)
- India Nivesh Ltd (501700)
- Indo Tech Transformers Ltd (532717)
- NR Agarwal Industries Ltd (516082)
- Setco Automotive Ltd (505075)
- Shalimar Paints Ltd (509874)
- Sudal Industries Ltd (506003)
- Tulsyan NEC Ltd (513629)
- Visa Steel Ltd (532721)
Impact Justification
High encumbrance surveillance framework affects trading and investor confidence. Forbes & Company newly added to framework indicating elevated risk profile.