Description
BSE imposes a minimum 35% margin requirement on securities of companies with high promoter encumbrance as per Reg. 28(3) of SEBI (SAST) Regulation 2011, effective May 8, 2026.
Summary
BSE has updated the list of securities subject to the Surveillance Measure for companies with high promoter encumbrance under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Securities added to Annexure I will attract a minimum 35% margin in the Equity and Equity Derivatives segments effective May 8, 2026. This notice is in continuation of earlier Exchange notices dated October 24, 2019 and April 17, 2020.
Key Points
- Securities listed in Annexure I are newly included under the surveillance measure and will attract a minimum 35% margin in Equity and Equity Derivatives segments
- The 35% margin applies to all open positions as on May 7, 2026 and all new positions created from May 8, 2026
- Securities listed in Annexure II are eligible to exit the framework effective May 6, 2026
- Annexure III provides the consolidated list of all securities currently under this framework
- This measure operates in conjunction with all other prevailing surveillance measures imposed by the Exchange
- Inclusion under this measure is purely for market surveillance purposes and should not be construed as adverse action against the company
Regulatory Changes
This notice updates the list of securities under the High Encumbrance Surveillance Measure framework originally established via Exchange notice 20191024-30 (October 24, 2019) and subsequently modified by notice 20200417-31 (April 17, 2020). The framework is based on Regulation 28(3) of SEBI (SAST) Regulations, 2011, which governs disclosures related to encumbrance of promoter shareholding.
Compliance Requirements
- Trading Members must ensure that the minimum 35% margin is collected on all positions in the newly included securities (Annexure I) from May 8, 2026
- Margin must be applied to all open positions as of end of day May 7, 2026
- Affected companies wishing to contest their inclusion must submit representations to the Exchange by 5:00 PM on May 6, 2026
- Members requiring clarification should refer to the original notices or contact bse.surv@bseindia.com
Important Dates
| Date | Event |
|---|---|
| May 5, 2026 | Notice issued |
| May 6, 2026 | Deadline for company representations (5:00 PM) |
| May 6, 2026 | Annexure II securities exit the framework |
| May 7, 2026 | Reference date for open positions subject to new margin |
| May 8, 2026 | 35% margin becomes effective for Annexure I securities |
Impact Assessment
This circular has a high market impact for trading participants holding or planning to hold positions in the newly added securities. The mandatory 35% margin requirement significantly increases the capital required to maintain or initiate positions in affected stocks in both cash and derivatives markets. Investors and traders in high-encumbrance stocks face increased margin calls on existing open positions effective May 7, 2026. Securities exiting the framework (Annexure II) will see a reduction in their margin requirements from May 6, 2026, potentially improving liquidity and reducing holding costs for those stocks. The measure is subject to periodic review by BSE.
Impact Justification
Imposes a mandatory 35% margin on affected securities in both Equity and Equity Derivatives segments, directly impacting trading costs and positions for all market participants in listed stocks with high promoter encumbrance.