Description
BSE mandates minimum 75% margin in Equity and Equity Derivatives segments for securities with high promoter/non-promoter encumbrance under SEBI SAST Reg. 28(3), effective May 6, 2026. Securities eligible for exit from the framework are listed separately.
Summary
BSE has issued an updated notice (20260430-43) continuing its framework for companies with high promoter and non-promoter share 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 requirement in both Equity and Equity Derivatives segments from May 6, 2026, while certain securities become eligible for removal from the framework from May 4, 2026.
Key Points
- Securities listed in Annexure I meet the criteria for inclusion under the encumbrance measure and will attract a minimum 75% margin in Equity and Equity Derivatives segments
- The 75% margin requirement applies to all open positions as on May 5, 2026, and all new positions created from May 6, 2026
- Securities listed in Annexure II are eligible to exit the framework effective May 4, 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 exchanges
- Inclusion in this measure should not be construed as an adverse action against the concerned company or entity
- Continuation of framework originally established via notice 20220131-43 dated January 31, 2022
Regulatory Changes
No new regulatory framework is introduced; this is a periodic update to the existing encumbrance-based surveillance measure under SEBI (SAST) Regulation 28(3). The measure triggers enhanced margin requirements when promoter or non-promoter encumbrance on securities crosses specified thresholds, as disclosed under SEBI’s substantial acquisition regulations.
Compliance Requirements
- Trading Members must ensure minimum 75% margin is collected from clients on securities in Annexure I for all equity and equity derivatives positions
- Members must apply the margin requirement to existing open positions as of May 5, 2026 (not just new positions)
- All new positions in Annexure I securities created from May 6, 2026 onwards must comply with the 75% margin requirement
- Members should cross-reference Annexure III for the complete current list of securities under this framework
- For clarifications, members should contact: bse.surv@bseindia.com
Important Dates
| Date | Event |
|---|---|
| April 30, 2026 | Notice issued |
| May 4, 2026 | Annexure II securities become eligible to exit the framework |
| May 5, 2026 | Reference date for existing open positions subject to 75% margin |
| May 6, 2026 | 75% margin requirement becomes effective for Annexure I securities |
Impact Assessment
This measure has high market impact for traders and investors holding positions in the affected securities:
- Increased capital requirement: A 75% margin requirement is significantly above standard margin levels, substantially increasing the cost of holding positions in affected securities
- Derivatives impact: The margin hike extends to the Equity Derivatives segment, affecting futures and options positions in addition to equity holdings
- Retroactive application: Existing open positions as of May 5, 2026 are also subject to the new margin requirement, potentially triggering margin calls for existing position holders
- Liquidity effect: Higher margin requirements typically reduce trading volumes and liquidity in affected securities
- Positive signal for Annexure II: Securities exiting the framework (Annexure II) may see improved liquidity and reduced trading costs from May 4, 2026
- The measure is part of BSE’s ongoing surveillance to manage systemic risk from highly encumbered securities, and is subject to periodic review
Impact Justification
Imposes a significant 75% minimum margin requirement on affected securities in both equity and derivatives segments, directly impacting trading costs and positions for market participants holding these stocks.