Description

BSE circular regarding surveillance measures for companies with high encumbrance as per SEBI (SAST) Regulation 2011, effective February 01, 2026. One security moves out while eleven securities remain under surveillance.

Summary

BSE has issued an updated list of securities under surveillance measures for companies with high ‘Encumbrance’ as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, effective February 01, 2026. No new securities have been added to the framework. One security, Panorama Studios International Ltd, has been removed from the high encumbrance framework as it has been included in the Short-term Additional Surveillance Measure (STASM) Framework. The consolidated list now contains 11 securities under this surveillance measure.

Key Points

  • Effective date: February 01, 2026
  • No new securities added to high encumbrance surveillance (Annexure I shows ‘Nil’)
  • One security moving out: Panorama Studios International Ltd (Scrip Code: 539469, ISIN: INE258R01028)
  • Panorama Studios moved out due to inclusion in STASM Framework
  • Consolidated list contains 11 securities under high encumbrance surveillance
  • Framework based on SEBI (SAST) Regulation 2011, Regulation 28(3)

Regulatory Changes

This circular implements the surveillance framework under SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, specifically Regulation 28(3) which deals with encumbrance of shares. The framework identifies companies where promoter shareholding has high levels of encumbrance (pledges, liens, or other security interests), which may pose risks to investors and market stability.

Compliance Requirements

Market participants should note:

  • Securities under this surveillance measure may face additional monitoring and trading restrictions
  • Investors should exercise caution when trading in these securities
  • Companies in the consolidated list must comply with disclosure requirements regarding encumbrance levels
  • Transition of securities between different surveillance frameworks (high encumbrance to STASM/LTASM) requires adherence to respective framework rules

Important Dates

  • February 01, 2026: Effective date for the updated surveillance measure list
  • January 30, 2026: Circular issuance date

Impact Assessment

Securities Exiting Framework:

  • Panorama Studios International Ltd exits high encumbrance surveillance but enters STASM framework, indicating continued surveillance under different criteria

Securities Under Surveillance (11 companies):

  1. B. L. Kashyap and Sons Ltd (532719)
  2. Cohance Lifesciences Ltd (543064)
  3. Hindustan Zinc Ltd (500188)
  4. Jayaswal Neco Industries Ltd (522285)
  5. Share India Securities Ltd (540725)
  6. SPML Infra Ltd (500402)
  7. Steel Exchange India Ltd (534748)
  8. Thyrocare Technologies Ltd (539871)
  9. Trualt Bioenergy Ltd (544545)
  10. Veranda Learning Solutions Ltd (543514)
  11. Vikram Solar Ltd (544488)

Market Impact:

  • Medium severity as it affects investor sentiment and trading behavior for 11 securities
  • Signals potential concerns about promoter financial stability due to high pledges
  • May result in increased volatility or reduced liquidity for affected stocks
  • Movement between surveillance frameworks (encumbrance to STASM) indicates escalating concerns
  • Ten of the eleven securities are also listed on NSE, indicating wider market impact

Impact Justification

Updates surveillance framework affecting 12 securities. One company exits due to inclusion in STASM framework. Impacts trading conditions for listed companies with high promoter encumbrance.