Description

NSE updates surveillance measures for companies with high promoter and non-promoter encumbrance, removing two securities from the framework while maintaining minimum 75% margin requirements.

Summary

NSE has updated its surveillance measure for companies with high promoter and non-promoter encumbrance under SEBI (SAST) Regulation 2011. Two securities are being removed from the framework effective August 1, 2025, while no new securities are being added. The measure continues to impose minimum 75% margin requirements in equity and equity derivatives segments.

Key Points

  • No new securities added to the surveillance framework (Annexure I shows ‘Nil’)
  • Two securities removed from the framework: B.L. Kashyap and Sons Limited (BLKASHYAP) and Tourism Finance Corporation of India Limited (TFCILTD)
  • Consolidated list now contains 4 securities under the surveillance measure
  • 75% minimum margin requirement continues for affected securities
  • Framework subject to periodic review and works in conjunction with other exchange measures

Regulatory Changes

The surveillance measure operates under Regulation 28(3) of SEBI (SAST) Regulation 2011, targeting companies with high promoter and non-promoter encumbrance. This framework is designed to monitor and control trading in securities where ownership structures may pose risks.

Compliance Requirements

  • Trading members must ensure minimum 75% margin on all open positions as of August 4, 2025 for securities under the framework
  • New positions created from August 5, 2025 onwards will attract the 75% margin requirement
  • Members must comply with all other prevailing surveillance measures imposed by exchanges

Important Dates

  • August 1, 2025: Effective date for removal of BLKASHYAP and TFCILTD from surveillance framework
  • August 4, 2025: Last date for existing positions before new margin requirements
  • August 5, 2025: New margin requirements (75%) applicable to continuing securities in the framework

Impact Assessment

The removal of two securities from the surveillance framework provides relief to those specific stocks, potentially improving liquidity and reducing trading costs. The four remaining securities (INDOTECH, JAYNECOIND, STEELXIND, THYROCARE) continue under enhanced surveillance with higher margin requirements. This selective approach indicates NSE’s targeted risk management strategy for companies with complex ownership structures.

Impact Justification

Affects specific securities with changes to surveillance framework and margin requirements