Description
NSE imposes 35% margin requirement on securities of companies with high promoter shareholding encumbrance. Four securities added, four removed from surveillance framework effective October 6-8, 2025.
Summary
NSE has updated its surveillance framework for companies with high promoter shareholding encumbrance as per SEBI (SAST) Regulation 28(3). Four securities are being added to the framework requiring minimum 35% margin in Equity and Equity Derivatives segments, while four securities are being removed. The consolidated list now contains five securities under this surveillance measure.
Key Points
- Four securities added to high encumbrance surveillance: MSP Steel & Power Limited (MSPL), Share India Securities Limited (SHAREINDIA), Tilaknagar Industries Limited (TI), and Nuvama Wealth Management Limited (NUVAMA)
- Four securities removed from framework: Indo Tech Transformers Limited (INDOTECH), Marathon Nextgen Realty Limited (MARATHON), RattanIndia Power Limited (RTNPOWER), and Steel Exchange India Limited (STEELXIND)
- Minimum 35% margin requirement applies to both Equity and Equity Derivatives segments
- Consolidated list contains 5 securities: AAVAS, MSPL, SHAREINDIA, TI, NUVAMA
- This measure is in conjunction with all other prevailing surveillance measures
- Shortlisting is purely for market surveillance and not an adverse action against companies
Regulatory Changes
The surveillance framework enforces SEBI (SAST) Regulation 28(3) which addresses high encumbrance of promoter shareholding. Securities meeting the criteria face enhanced margin requirements to mitigate risks associated with highly encumbered promoter holdings.
Compliance Requirements
- Trading members must ensure 35% minimum margin on all open positions as of October 07, 2025 for newly added securities
- 35% margin applies to new positions created from October 08, 2025 onwards
- Margin requirement applicable in both Equity and Equity Derivatives segments
- Companies may submit representations regarding placement in framework by 5:00 PM on October 06, 2025
- Queries should be directed to surveillance@nse.co.in
Important Dates
- October 03, 2025: Circular issued
- October 06, 2025: Securities exclusion effective date; deadline for company representations (5:00 PM)
- October 07, 2025: 35% margin applies to all open positions in newly added securities
- October 08, 2025: 35% margin effective for new positions in added securities
Impact Assessment
Securities Added (Higher Impact):
- MSPL, SHAREINDIA, TI, NUVAMA will face increased margin requirements, potentially reducing trading volumes and liquidity
- Traders holding positions in these securities must meet 35% margin requirements, increasing capital costs
- Higher margins may deter speculative trading and reduce volatility
Securities Removed (Positive Impact):
- INDOTECH, MARATHON, RTNPOWER, STEELXIND will see relaxation of enhanced margin requirements
- Improved trading flexibility and potentially higher liquidity for these securities
Overall Market Impact:
- Framework aims to protect market integrity by ensuring adequate margins for securities with high promoter encumbrance risk
- Periodic review ensures dynamic adjustment based on changing risk profiles
Impact Justification
Affects trading margins for specific securities due to high promoter encumbrance, requiring 35% minimum margin which impacts liquidity and trading costs for affected stocks