Description

NSE implements surveillance measures with 75% margin requirement for companies with high promoter and non-promoter encumbrance, adding one security and maintaining consolidated list of five securities.

Summary

NSE has updated its surveillance measure for companies with high promoter and non-promoter encumbrance under SEBI (SAST) Regulation 28(3). One new security (Hindusthan National Glass & Industries Limited) has been added to the framework, while no securities have been excluded. The measure requires minimum 75% margin in equity and equity derivatives segments.

Key Points

  • One security added to surveillance framework: HINDNATGLS (Hindusthan National Glass & Industries Limited)
  • No securities excluded from the framework in this update
  • Consolidated list now contains 5 securities under the encumbrance measure
  • Minimum 75% margin requirement applies to both equity and equity derivatives segments
  • Measure applies to all open positions and new positions created

Regulatory Changes

The surveillance measure is implemented under SEBI (SAST) Regulation 2011, specifically Regulation 28(3) dealing with high promoter and non-promoter encumbrance. This is a continuation of the framework established in January 2022.

Compliance Requirements

  • Trading members must ensure 75% minimum margin for affected securities
  • Margin requirements apply to all open positions as of August 21, 2025
  • New positions created from August 22, 2025 onwards must comply with margin requirements
  • Measure works in conjunction with other prevailing exchange measures

Important Dates

  • August 20, 2025: Effective date for exclusions (none in this update)
  • August 21, 2025: Cut-off date for existing open positions
  • August 22, 2025: 75% margin requirement becomes effective for HINDNATGLS

Impact Assessment

The addition of one security to the surveillance framework has limited market impact. The 75% margin requirement significantly increases capital requirements for trading in affected securities, potentially reducing speculative activity. The consolidated list of 5 securities (FMNL, HINDNATGLS, INDOTECH, STEELXIND, THYROCARE) remains subject to periodic review. The exchange clarifies that inclusion should not be construed as adverse action against the companies.

Impact Justification

Affects trading margins for specific securities but limited to companies with high encumbrance levels