Description
BSE mandates minimum 75% margin on securities with high promoter and non-promoter encumbrance under SEBI (SAST) Regulation 2011, effective May 14, 2026, while certain securities are eligible for exit from the framework from May 12, 2026.
Summary
BSE has issued an update (Notice No. 20260511-36) in continuation of Exchange notice no. 20220131-43 dated January 31, 2022, regarding the encumbrance-based surveillance measure under Reg. 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011. Securities meeting the high encumbrance criteria will attract a minimum 75% margin in the Equity and Equity Derivatives segments from May 14, 2026. Separately, certain securities become eligible to exit the framework from May 12, 2026.
Key Points
- Annexure I securities have satisfied inclusion criteria and will attract a minimum 75% margin in Equity and Equity Derivatives segments effective May 14, 2026
- The 75% margin applies to all open positions as on May 13, 2026, and all new positions created from May 14, 2026
- Annexure II securities are eligible to exit the encumbrance framework effective May 12, 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 the exchanges
- The framework is subject to periodic review
- Inclusion in this measure should not be construed as an adverse action against the concerned company
Regulatory Changes
The measure is based on Reg. 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011, which governs disclosure and consequences of high encumbrance of shares by promoters and non-promoters. BSE continues to enforce enhanced margin requirements as a surveillance tool for securities where pledging/encumbrance levels breach prescribed thresholds.
Compliance Requirements
- Trading Members must ensure that all clients holding or taking new positions in Annexure I securities maintain a minimum 75% margin from May 14, 2026
- Members must apply the enhanced margin to all open positions as on May 13, 2026 (not just new positions)
- Members should review the consolidated Annexure III list to identify all currently restricted securities
- For clarifications, members may contact BSE Surveillance at bse.surv@bseindia.com
Important Dates
| Date | Event |
|---|---|
| May 11, 2026 | Notice issued |
| May 12, 2026 | Annexure II securities eligible to exit the framework |
| May 13, 2026 | Reference date for open positions subject to 75% margin |
| May 14, 2026 | 75% margin requirement effective for Annexure I securities |
Impact Assessment
The 75% margin requirement is significantly higher than standard margin requirements and will materially increase the cost of holding positions in affected securities. Traders and investors with existing positions in Annexure I securities as of May 13, 2026, must ensure sufficient capital to meet the enhanced margin call. The measure affects both the cash equity segment and equity derivatives, broadening its impact across market participants. Securities exiting via Annexure II will see margin relief from May 12, 2026, potentially improving liquidity and trading activity in those counters. The periodic review mechanism means securities may enter or exit the framework on a rolling basis.
Impact Justification
Imposes a stringent 75% margin requirement on affected securities across both equity and equity derivatives segments, significantly increasing capital requirements for traders holding or creating positions in listed securities.