Description

BSE updates the list of securities under surveillance for high promoter and non-promoter encumbrance as per Reg. 28(3) of SEBI (SAST) Regulation 2011, adding Shalimar Paints Ltd effective March 05, 2026. No securities are moving out of the framework.

Summary

BSE has updated the list of securities subject to the encumbrance surveillance measure under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This measure applies to companies where both promoter and non-promoter encumbrance levels are high. Effective March 05, 2026, Shalimar Paints Ltd is added to the framework. No securities are exiting the framework in this update. The consolidated list now comprises 11 securities.

Key Points

  • Annexure I – New Addition (effective March 05, 2026): Shalimar Paints Ltd (Scrip Code: 509874, ISIN: INE849C01026)
  • Annexure II – Removals: Nil — no securities are moving out of the framework
  • Annexure III – Consolidated List: 11 securities remain under this surveillance measure
  • The measure is triggered by high encumbrance by both promoters and non-promoters as reported under Reg. 28(3) of SEBI (SAST) Regulations 2011
  • Securities marked (*) indicate data sourced from NSE

Regulatory Changes

This circular is issued under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, which mandates disclosures when encumbrance of shares held by promoters or persons acting in concert (PAC) exceeds prescribed thresholds. BSE periodically updates the list of companies falling under this surveillance framework based on reported encumbrance data.

Compliance Requirements

  • Companies listed in the consolidated list (Annexure III) are subject to enhanced surveillance measures
  • Promoters and PACs of listed companies must ensure timely and accurate disclosure of encumbrance details as required under SEBI (SAST) Regulations
  • Investors and market participants should exercise due diligence when trading in securities on this list
  • No immediate action is required by companies already on the consolidated list from prior updates

Important Dates

  • Effective Date: March 05, 2026 — Shalimar Paints Ltd added to the encumbrance surveillance framework
  • Circular Date: March 04, 2026

Impact Assessment

The addition of Shalimar Paints Ltd to the encumbrance surveillance list signals elevated promoter and non-promoter share pledging or encumbrance, which may increase investor caution around the stock. Securities on this list typically face closer regulatory monitoring and may experience sentiment-driven price volatility. The consolidated list of 11 companies spans multiple sectors including paints, infrastructure, finance, and steel. No securities were removed, indicating no improvement in encumbrance status for existing listed companies. Overall market impact is moderate and limited to the specific securities and their direct stakeholders.

Impact Justification

Routine surveillance update under SEBI SAST Reg. 28(3); adds one stock (Shalimar Paints) and removes none, bringing the consolidated list to 11 securities. Impacts affected companies and their investors through heightened regulatory scrutiny.