Description
BSE circular regarding surveillance measure for companies with high promoter and non-promoter encumbrance as per SEBI SAST Regulation 2011. Forbes & Company Ltd added to the framework effective January 30, 2026.
Summary
BSE has updated its surveillance framework 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 surveillance measure effective January 30, 2026. The consolidated framework now includes 14 securities. No securities are being removed from the framework.
Key Points
- Forbes & Company Ltd newly included in high encumbrance surveillance measure
- Measure applies to companies with high promoter as well as non-promoter encumbrance
- Framework based on SEBI (SAST) Regulation 2011, Regulation 28(3)
- No securities moving out of the framework in this update
- Total of 14 securities currently under this surveillance measure
Regulatory Changes
This circular implements surveillance measures under SEBI (SAST) Regulation 2011, specifically Regulation 28(3), which deals with encumbrance of shares. The framework aims to monitor companies where significant shareholding (both promoter and non-promoter) is encumbered, indicating potential financial stress or pledging of shares.
Compliance Requirements
- Market participants should note the inclusion of Forbes & Company Ltd in this surveillance framework
- Trading members and investors should exercise appropriate due diligence when dealing with securities under this measure
- Companies under this framework are subject to enhanced monitoring by the exchange
- Securities in this framework may face additional scrutiny and potential trading restrictions
Important Dates
- Effective Date: January 30, 2026
- Circular Date: January 29, 2026
Impact Assessment
Market Impact: Limited market-wide impact as only one security is being added. However, specific impact on Forbes & Company Ltd as it comes under enhanced surveillance.
Trading Impact: Securities under this framework may experience:
- Increased investor caution
- Potential liquidity concerns
- Enhanced regulatory oversight
- Possible price volatility due to surveillance designation
Investor Impact: Investors holding Forbes & Company Ltd should be aware of the high encumbrance status, which indicates significant pledging of shares by both promoters and non-promoters. This may signal financial stress and warrants careful monitoring.
Consolidated Framework: The framework now covers 14 securities across various sectors, including infrastructure, manufacturing, financial services, and paints industries.
Securities Under Framework
The complete list of 14 securities under high encumbrance surveillance includes:
- Brahmaputra Infrastructure Ltd
- Forbes & Company Ltd (newly added)
- Forbes Precision Tools and Machine Parts Ltd
- Future Market Networks Ltd
- Gayatri Highways Ltd
- India Finsec Ltd
- India Nivesh Ltd
- Indo Tech Transformers Ltd
- NR Agarwal Industries Ltd
- Setco Automotive Ltd
- Shalimar Paints Ltd
- Sudal Industries Ltd
- Tulsyan NEC Ltd
- Visa Steel Ltd
Impact Justification
Addition of one security to high encumbrance surveillance framework affects specific company trading but has limited market-wide impact. Investors in Forbes & Company need to be aware of increased surveillance.