Description
BSE mandates a minimum 75% margin on equity and equity derivatives positions for securities with high promoter and non-promoter encumbrance under SEBI (SAST) Regulation 2011, effective April 28, 2026. Securities eligible for exit from the framework are also listed.
Summary
BSE has issued a surveillance notice (Notice No. 20260423-35) under the Encumbrance Measure framework, in continuation of Exchange Notice No. 20220131-43 dated January 31, 2022. Securities with high promoter and/or non-promoter encumbrance as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 will attract a minimum 75% margin requirement in the Equity and Equity Derivatives segments. A separate set of securities is also being released from this framework.
Key Points
- Securities listed in Annexure I will attract a minimum 75% margin in the Equity and Equity Derivatives segments from April 28, 2026.
- The 75% margin applies to all open positions as on April 27, 2026, and all new positions created from April 28, 2026.
- Securities listed in Annexure II are eligible to exit the Encumbrance Measure framework effective April 24, 2026.
- A consolidated list of all securities currently under this framework is provided in Annexure III.
- This measure operates in conjunction with all other prevailing surveillance measures imposed by the exchanges.
- Inclusion in this measure should not be construed as an adverse action against the concerned company or entity.
Regulatory Changes
This notice updates the list of securities subject to the Encumbrance Measure under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. New securities are being added to the framework (Annexure I) while others are being removed (Annexure II), reflecting periodic review of encumbrance levels.
Compliance Requirements
- Trading Members must ensure that the minimum 75% margin is collected/maintained for all positions in securities listed under Annexure I, effective from the applicable dates.
- Members with open positions in Annexure I securities as on April 27, 2026 must apply the enhanced margin requirement.
- For clarifications, trading members may contact BSE Surveillance at bse.surv@bseindia.com.
Important Dates
| Event | Date |
|---|---|
| Notice Date | April 23, 2026 |
| Exit effective date (Annexure II securities) | April 24, 2026 |
| Reference date for open positions (Annexure I) | April 27, 2026 |
| 75% margin requirement effective date (Annexure I) | April 28, 2026 |
Impact Assessment
The 75% minimum margin requirement is a high-impact surveillance measure that significantly increases the cost of holding or taking new positions in the affected securities. This constrains leverage available to traders and may reduce liquidity in the listed stocks. The measure targets securities where promoters and/or non-promoters have pledged or encumbered a high proportion of their holdings, signalling elevated financial risk. Market participants with existing or planned positions in Annexure I securities must reassess their capital allocation ahead of April 28, 2026. The concurrent removal of securities via Annexure II provides relief to those companies that have reduced their encumbrance levels.
Impact Justification
Imposes a significant 75% minimum margin requirement on affected securities in both equity and equity derivatives segments, directly affecting trading costs and capital requirements for market participants. Securities lists (inclusions and exits) are provided in annexures.