Description
BSE imposes minimum 75% margin requirement on securities with high promoter and non-promoter encumbrance under SEBI SAST Regulation 28(3), effective May 22, 2026. Certain securities are also being removed from the framework effective May 20, 2026.
Summary
BSE has issued a notice (No. 20260519-28) updating the list of securities subject to the encumbrance-based surveillance measure under SEBI (SAST) Regulation 28(3). Securities meeting the criteria for high promoter and/or non-promoter encumbrance will attract a minimum 75% margin in the Equity and Equity Derivatives segments from May 22, 2026. This is a continuation of Exchange notice no. 20220131-43 dated January 31, 2022.
Key Points
- Securities in Annexure I meet the criteria for inclusion and will attract a minimum 75% margin in Equity and Equity Derivatives segments
- The 75% margin applies to all open positions as on May 21, 2026, and all new positions created from May 22, 2026
- Securities in Annexure II are eligible to exit the framework effective May 20, 2026
- Annexure III contains the consolidated list of all securities currently under this 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
This notice updates the list of securities under the encumbrance-based surveillance framework originally established under Exchange notice no. 20220131-43 (January 31, 2022). The framework is anchored in SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, specifically Regulation 28(3), which governs disclosure and monitoring of encumbered shareholding by promoters.
Compliance Requirements
- Trading Members must ensure minimum 75% margin is collected on all positions (existing and new) in Annexure I securities from May 22, 2026
- Members must apply the revised framework to all open positions as on May 21, 2026
- For clarifications, members may contact BSE Surveillance at bse.surv@bseindia.com
- The measure is cumulative with all other existing exchange-imposed measures
Important Dates
| Date | Event |
|---|---|
| May 19, 2026 | Notice issued |
| May 20, 2026 | Annexure II securities exit the framework |
| May 21, 2026 | Reference date for existing open positions subject to new margin |
| May 22, 2026 | 75% minimum margin becomes effective for Annexure I securities |
Impact Assessment
This measure significantly increases the cost of trading in affected securities by mandating a minimum 75% margin, compared to standard margin requirements. This applies across both cash equity and derivatives segments, which can reduce liquidity and increase funding costs for traders holding positions in these stocks. The securities affected are those where promoters or non-promoters have pledged or encumbered a substantial portion of their holdings, signaling elevated financial risk. Stocks exiting via Annexure II will see relief from the elevated margin requirement from May 20, 2026. The full list of affected securities is available in the PDF annexures attached to this notice.
Impact Justification
Imposes a mandatory 75% minimum margin on affected securities in both equity and equity derivatives segments, significantly increasing cost of trading for market participants holding or creating positions in listed companies with high encumbrance levels.