Description
BSE updates the list of securities subject to minimum 75% margin requirements under the high encumbrance framework per SEBI (SAST) Regulation 2011, effective May 5, 2026, with certain securities exiting the framework from April 30, 2026.
Summary
BSE has issued an updated notice (Notice No. 20260429-31) under the high encumbrance surveillance framework per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Securities meeting the high promoter and/or non-promoter encumbrance criteria will attract a minimum 75% margin in the Equity and Equity Derivatives segments from May 5, 2026. Certain securities are also being removed from the framework effective April 30, 2026.
Key Points
- Securities listed in Annexure I are newly included in the framework and will attract a minimum 75% margin in Equity and Equity Derivatives segments
- The 75% margin applies to all open positions as on May 4, 2026, and all new positions created from May 5, 2026
- Securities listed in Annexure II are eligible to exit the framework effective April 30, 2026
- Annexure III provides the 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 framework should not be construed as adverse action against the concerned company
- Continuation of Exchange notice no. 20220131-43 dated January 31, 2022
Regulatory Changes
No new regulatory framework is introduced. This is a periodic review update under the existing high encumbrance measure established via Exchange notice no. 20220131-43 (January 31, 2022), which itself is based on SEBI (SAST) Regulation 2011, Reg. 28(3). The annexures are updated to reflect current encumbrance data.
Compliance Requirements
- Trading Members must note and comply with the revised margin requirements for affected securities
- A minimum 75% margin must be collected on all open positions in Annexure I securities as on May 4, 2026
- The 75% margin must also apply to all new positions in Annexure I securities created from May 5, 2026 onward
- Members may seek clarifications by writing to bse.surv@bseindia.com
Important Dates
| Date | Event |
|---|---|
| April 29, 2026 | Notice issued |
| April 30, 2026 | Annexure II securities exit the encumbrance framework |
| May 4, 2026 | Reference date for existing open positions subject to new margin |
| May 5, 2026 | 75% margin requirement becomes effective for Annexure I securities |
Impact Assessment
This circular has high trading impact for market participants holding or planning to trade in the affected securities. The 75% minimum margin requirement significantly increases the cost of carrying positions — both existing and new — in the listed securities across Equity and Equity Derivatives segments. Traders and investors in these stocks will need to arrange additional capital to maintain positions from May 5, 2026. The simultaneous exit of Annexure II securities provides partial relief to members holding those positions. The measure is periodic and subject to further review, meaning securities may be added or removed in future notices.
Impact Justification
Imposes 75% minimum margin on specific securities in both Equity and Equity Derivatives segments, directly affecting trading costs and open positions; multiple annexures of companies included/excluded indicate broad market impact.