Description

BSE updates the list of securities under surveillance due to high promoter encumbrance as per SEBI (SAST) Regulation 2011, effective February 3, 2026.

Summary

BSE has updated the surveillance framework for companies with high promoter encumbrance as per Regulation 28(3) of SEBI (SAST) Regulation 2011. The circular identifies 8 securities being added to surveillance, 6 securities moving out, and provides a consolidated list of 13 securities under this framework effective February 3, 2026. High encumbrance indicates promoters have pledged substantial shareholdings, posing potential risks to investors.

Key Points

  • 8 securities added to high encumbrance surveillance framework
  • 6 securities removed from the framework
  • Consolidated list contains 13 securities under surveillance
  • Surveillance measure effective from February 3, 2026
  • Framework based on SEBI (SAST) Regulation 2011, Reg. 28(3)
  • Some securities moved to other surveillance frameworks (LTASM, STASM)

Regulatory Changes

This circular implements ongoing surveillance under SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, specifically Regulation 28(3) which mandates disclosure of encumbrance of shares. The high encumbrance surveillance framework is designed to alert investors about companies where promoters have pledged significant portions of their shareholding.

Compliance Requirements

  • Companies must comply with SEBI (SAST) Regulation 2011 disclosure requirements regarding promoter encumbrance
  • Listed entities must maintain transparency regarding pledged shares
  • Trading members and investors should be aware of enhanced surveillance status
  • Securities under this framework may be subject to additional monitoring and restrictions

Important Dates

  • Effective Date: February 3, 2026 - New surveillance measure becomes applicable
  • Circular Date: February 2, 2026

Securities Details

Added to Surveillance (Annexure I - 8 Securities)

  1. Afcons Infrastructure Limited (544280, INE101I01011)
  2. Genus Power Infrastructures Limited (530343, INE955D01029)
  3. GMR Power and Urban Infra Limited (543490, INE0CU601026)
  4. MSP Steel & Power Limited (532650, INE752G01015)
  5. Patel Engineering Limited (531120, INE244B01030)
  6. RattanIndia Power Limited (533122, INE399K01017)
  7. Tilaknagar Industries Limited (507205, INE133E01013)
  8. Vedanta Limited (500295, INE205A01025)

Removed from Surveillance (Annexure II - 6 Securities)

  1. B. L. Kashyap and Sons Limited (532719, INE350H01032)
  2. Share India Securities Limited (540725, INE932X01026)
  3. SPML Infra Limited (500402, INE937A01023)
  4. Steel Exchange India Limited (534748, INE503B01021)
  5. Thyrocare Technologies Limited (539871, INE594H01019)
  6. Veranda Learning Solutions Limited (543514, INE0IQ001011)

Consolidated List (Annexure III - 13 Securities Total)

Includes the 8 added securities plus 5 existing securities:

  • Cohance Lifesciences Ltd (543064, INE03QK01018)
  • Hindustan Zinc Ltd (500188, INE267A01025)
  • Jayaswal Neco Industries Ltd (522285, INE854B01010)
  • Trualt Bioenergy Ltd (544545, INE0MWH01014)
  • Vikram Solar Ltd (544488, INE078V01014)

Impact Assessment

Market Impact: High - The surveillance measure affects 13 securities including major companies like Vedanta Limited and Hindustan Zinc Ltd. High promoter encumbrance can trigger concerns about financial stability, potential margin calls, and involuntary transfer of controlling stakes.

Investor Impact: Investors in these securities face elevated risk due to promoter pledges. If pledged shares are invoked due to margin calls or loan defaults, it could lead to change in management control, stock price volatility, and loss of investor confidence.

Trading Impact: Securities under this framework may face additional scrutiny, potential trading restrictions, and reduced liquidity. The surveillance status serves as a warning signal for market participants.

Sectoral Distribution: The affected companies span infrastructure, power, steel, mining, beverages, and engineering sectors, indicating widespread promoter leverage across industries.

Risk Factors: Some securities moved from high encumbrance to other surveillance frameworks (LTASM/STASM), indicating escalation of concerns beyond just encumbrance to broader surveillance criteria including price volatility or corporate governance issues.

Impact Justification

High encumbrance indicates significant promoter pledge risk, affecting 13 securities with potential trading restrictions and investor confidence impact