Description

BSE issues notice on securities attracting 75% minimum margin under the high encumbrance framework per SEBI SAST Regulation 28(3), with new inclusions effective May 4, 2026 and exclusions effective April 29, 2026.

Summary

BSE has issued a notice (No. 20260428-42) as a continuation of earlier notice 20220131-43 dated January 31, 2022, regarding the measure applicable to companies with high Promoter as well as non-Promoter encumbrance under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Securities meeting the inclusion criteria will attract a minimum 75% margin in the Equity and Equity Derivatives segments. Securities eligible for removal from the framework are also identified.

Key Points

  • Securities in Annexure I meet the criteria for inclusion under the high encumbrance measure and will attract a minimum 75% margin in Equity and Equity Derivatives segments.
  • The 75% margin applies to all open positions as on April 30, 2026, and to new positions created from May 04, 2026 onwards.
  • Securities listed in Annexure II are eligible to exit the framework effective April 29, 2026.
  • A consolidated list of all securities currently under the framework is provided in Annexure III.
  • This measure operates in conjunction with all other prevailing surveillance measures imposed by the Exchanges.
  • The framework is subject to periodic review.
  • Inclusion in the measure should not be construed as an adverse action against the concerned company or entity.

Regulatory Changes

This notice updates the list of securities under the encumbrance-based surveillance framework pursuant to SEBI (SAST) Regulation 28(3), which mandates monitoring and action on securities where promoter and/or non-promoter encumbrance levels are elevated. No change to the underlying regulatory framework is introduced; only the list of covered securities is revised.

Compliance Requirements

  • Trading Members must ensure a minimum 75% margin is collected on positions in securities listed under Annexure I, effective for open positions as on April 30, 2026, and all new positions from May 04, 2026.
  • Members should update their systems to reflect the exit of Annexure II securities from the framework effective April 29, 2026.
  • Members should refer to Annexure III for the current consolidated list of securities under the framework.
  • For clarifications, members may contact BSE Surveillance at bse.surv@bseindia.com.

Important Dates

  • April 28, 2026: Notice date.
  • April 29, 2026: Effective date for removal of Annexure II securities from the encumbrance framework.
  • April 30, 2026: Reference date for open positions subject to the 75% margin requirement.
  • May 04, 2026: Effective date for 75% minimum margin on Annexure I securities (open positions as of April 30, 2026, and all new positions thereafter).

Impact Assessment

The imposition of a 75% minimum margin requirement on affected securities significantly increases the capital required to hold or create positions in those securities, both in the cash equity and derivatives segments. This can reduce liquidity in the affected counters, increase cost of trading, and may trigger forced unwinding for participants who cannot meet the enhanced margin. The exit of securities via Annexure II provides relief for those counters, restoring normal margin conditions. Market participants with existing positions in the newly included securities should review their margin commitments ahead of April 30, 2026 to avoid margin shortfalls.

Impact Justification

Imposes a significant 75% minimum margin requirement on affected securities in both equity and equity derivatives segments, directly impacting trading costs and position management for market participants.