Description

NSE surveillance measure updates for companies with high promoter and non-promoter encumbrance, with margin requirements and exclusions effective August 2025.

Summary

NSE has updated its surveillance measure for companies with high promoter and non-promoter encumbrance under SEBI SAST Regulation 28(3). The circular excludes one security from the measure while maintaining the existing consolidated list of four securities subject to minimum 75% margin requirements.

Key Points

  • No new securities added to the encumbrance surveillance measure
  • Jayaswal Neco Industries Limited (JAYNECOIND) excluded from the measure effective August 14, 2025
  • Minimum 75% margin requirement continues for securities under the framework
  • Consolidated list maintains four securities: FMNL, INDOTECH, STEELXIND, and THYROCARE
  • Measure applies to both equity and equity derivatives segments

Regulatory Changes

The surveillance framework under SEBI SAST Regulation 28(3) remains active with updated exclusions. The measure targets companies with high promoter and non-promoter share encumbrance to ensure adequate risk management.

Compliance Requirements

  • Trading members must ensure minimum 75% margin for all securities under the consolidated list
  • Margin requirements apply to all open positions as of August 18, 2025 and new positions from August 19, 2025
  • Compliance with all other prevailing exchange measures remains mandatory

Important Dates

  • August 14, 2025: Jayaswal Neco Industries Limited excluded from measure
  • August 18, 2025: Cut-off date for existing open positions
  • August 19, 2025: Enhanced margin requirements take effect for remaining securities

Impact Assessment

Limited market impact as only one security is being excluded from the measure. The four remaining securities (FMNL, INDOTECH, STEELXIND, THYROCARE) continue to face enhanced margin requirements, maintaining risk management protocols for high encumbrance situations. This measure works in conjunction with other surveillance frameworks and is subject to periodic review.

Impact Justification

Affects specific securities with margin requirement changes but limited scope with only one exclusion and existing consolidated list