Description

NSE circular updating the list of securities under high encumbrance measure. Two securities (THYROCARE and FMNL) are being removed from the framework effective November 03, 2025, while no new securities are being added.

Summary

NSE has issued a surveillance circular (Ref: 847/2025) updating the list of securities under the framework for companies with high Promoter and non-Promoter encumbrance as per Regulation 28(3) of SEBI (SAST) Regulation 2011. This circular continues the measure first introduced via circular NSE/SURV/51189 dated January 31, 2022. Notably, no new securities are being added to the measure, while two securities are being removed, bringing the total consolidated list to nil securities under this framework.

Key Points

  • No new securities are being added to the high encumbrance surveillance measure (Annexure I shows “Nil”)
  • Two securities are being removed from the measure: Thyrocare Technologies Limited (THYROCARE, ISIN: INE594H01019) and Future Market Networks Limited (FMNL, ISIN: INE360L01017)
  • The consolidated list of securities under this framework is now nil (Annexure III)
  • Securities under this measure would attract minimum 75% margin in Equity and Equity Derivatives segments
  • This measure operates in conjunction with all other prevailing exchange measures
  • The framework is subject to periodic review
  • Shortlisting under this measure should not be construed as adverse action against the company

Regulatory Changes

This circular maintains the existing regulatory framework established under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, which addresses companies with high promoter and non-promoter encumbrance levels. No changes to the regulatory framework itself are introduced in this update.

Compliance Requirements

  • Trading members are required to note the updated list of securities under the framework
  • For securities newly added (none in this circular): minimum 75% margin would be required in Equity and Equity Derivatives segments on all open positions and new positions
  • For securities being removed: THYROCARE and FMNL will no longer be subject to the special margin requirements from the effective date
  • Market participants must ensure compliance with all other prevailing measures imposed by the exchange
  • Any queries should be directed to surveillance@nse.co.in

Important Dates

  • October 31, 2025: Circular issue date
  • November 03, 2025: Effective date for exclusion of THYROCARE and FMNL from the measure
  • November 04, 2025: Reference date for open positions (if new securities were added)
  • November 06, 2025: Implementation date for margin requirements (if new securities were added)

Impact Assessment

Market Impact: Low - This circular has minimal market impact as it removes securities from restrictive measures rather than adding them. The removal of THYROCARE and FMNL from the high encumbrance framework is positive for these securities as it indicates improved encumbrance levels.

Operational Impact: Low - Trading members will see reduced compliance burden with two fewer securities subject to special margin requirements. The consolidated list now being nil suggests the measure is currently not actively restricting any securities.

Investor Impact: Positive for THYROCARE and FMNL shareholders - The removal from this surveillance measure indicates that promoter and non-promoter encumbrance levels have improved to acceptable levels, potentially improving liquidity and reducing trading costs through lower margin requirements.

Regulatory Significance: The fact that no securities currently meet the criteria for inclusion under this measure (consolidated list is nil) suggests that companies have generally maintained acceptable encumbrance levels, which is a positive indicator for market health.

Impact Justification

This is a routine update removing two securities from high encumbrance surveillance. No new securities added and consolidated list shows nil securities under the measure, indicating positive development for affected companies.