Description

BSE updates the list of securities subject to 75% margin requirements under the encumbrance surveillance measure per SEBI SAST Regulation 28(3). New inclusions effective April 15, 2026; exclusions effective April 10, 2026.

Summary

BSE has updated the list of securities under the Encumbrance Surveillance Measure pursuant to Reg. 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This is a continuation of Exchange Notice No. 20220131-43 dated January 31, 2022. Securities meeting the encumbrance criteria will attract a minimum 75% margin in Equity and Equity Derivatives segments. The full list of securities is provided in three annexures attached to the notice.

Key Points

  • Securities in Annexure I are newly included and will attract a minimum 75% margin in Equity and Equity Derivatives segments effective April 15, 2026
  • The 75% margin applies to all open positions as on April 13, 2026, and all new positions created from April 15, 2026
  • Securities in Annexure II are eligible to exit the framework effective April 10, 2026
  • Annexure III provides a consolidated list of all securities currently under the framework
  • This measure operates in conjunction with all other prevailing surveillance measures imposed by exchanges
  • Inclusion in this measure should not be construed as an adverse action against the concerned company

Regulatory Changes

The measure is based on Reg. 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, which addresses high levels of promoter and non-promoter encumbrance on securities. BSE periodically reviews and updates the list of securities subject to this framework.

Compliance Requirements

  • Trading Members must note and comply with the revised margin requirements for securities listed in Annexure I
  • A minimum 75% margin must be collected on all open positions in affected securities as on April 13, 2026
  • A minimum 75% margin must be collected on all new positions in affected securities created from April 15, 2026 onwards
  • For clarifications, members may contact BSE Surveillance at bse.surv@bseindia.com

Important Dates

  • April 9, 2026 — Notice issued
  • April 10, 2026 — Securities in Annexure II exit the encumbrance framework
  • April 13, 2026 — Reference date for open positions subject to 75% margin
  • April 15, 2026 — 75% margin requirement becomes effective for Annexure I securities

Impact Assessment

This measure significantly increases the cost of holding or taking positions in affected securities by requiring a 75% margin, compared to standard margin levels. This applies to both the Equity and Equity Derivatives segments, meaning traders with leveraged or derivative positions in flagged stocks will need to post substantially higher collateral. The periodic review mechanism means securities can both enter and exit the framework, and the simultaneous inclusion (Annexure I) and exclusion (Annexure II) updates indicate active monitoring of promoter encumbrance levels across listed companies.

Impact Justification

Imposes 75% margin requirement on affected securities in both Equity and Equity Derivatives segments, directly affecting trading costs and positions for market participants.