Description

NSE circular regarding the exclusion of four securities (MSPL, AAVAS, TI, NUVAMA) from high encumbrance surveillance measure and updated consolidated list effective November 6, 2025.

Summary

NSE has issued an update to the surveillance framework for companies with high encumbrance of promoter shareholding as per Regulation 28(3) of SEBI (SAST) Regulation 2011. No new securities are being added to the framework. Four securities (MSP Steel & Power, Aavas Financiers, Tilaknagar Industries, and Nuvama Wealth Management) are being excluded from the surveillance measure effective November 6, 2025. The consolidated list now contains only Share India Securities Limited.

Key Points

  • No securities are being added to the high encumbrance surveillance framework (Annexure I is Nil)
  • Four securities are being removed from the framework effective November 6, 2025
  • Excluded securities: MSPL (MSP Steel & Power Limited), AAVAS (Aavas Financiers Limited), TI (Tilaknagar Industries Limited), and NUVAMA (Nuvama Wealth Management Limited)
  • Only one security remains under this surveillance measure: SHAREINDIA (Share India Securities Limited)
  • This measure works in conjunction with all other prevailing surveillance measures
  • Companies can submit representations by 5:00 PM on November 6, 2025

Regulatory Changes

This circular continues the surveillance framework introduced in earlier circulars (NSE/SURV/42507 dated October 24, 2019 and NSE/SURV/44169 dated April 17, 2020). The framework monitors companies where promoter shareholding has high encumbrance levels as reported under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011.

The surveillance measure is subject to periodic review and exclusions are made when companies no longer meet the criteria for high encumbrance.

Compliance Requirements

  • Trading members must note that securities under this framework attract minimum 35% margin in Equity and Equity Derivatives segment
  • The margin requirement applies to all open positions and new positions created
  • For any new inclusions (none in this circular), margins would apply from November 10, 2025 on all open positions as on November 7, 2025 and new positions from November 10, 2025
  • Companies wishing to make representations must submit them to surveillance@nse.co.in by 5:00 PM on November 6, 2025

Important Dates

  • November 4, 2025: Circular issued
  • November 6, 2025: Effective date for exclusion of four securities from the framework; deadline for company representations (5:00 PM)
  • November 7, 2025: Reference date for open positions (if new securities were added)
  • November 10, 2025: Margin application date (if new securities were added)

Impact Assessment

Positive Impact: The four excluded securities (MSPL, AAVAS, TI, NUVAMA) will no longer be subject to the 35% minimum margin requirement, improving liquidity and trading flexibility for these stocks. This indicates improved promoter encumbrance levels for these companies.

Current Restriction: Only Share India Securities Limited (SHAREINDIA) remains under this surveillance measure and continues to face the 35% margin requirement in both equity and derivatives segments.

Market Significance: The reduction from five to one security in this framework demonstrates improved compliance and lower encumbrance levels across most previously-monitored companies. The surveillance measure is explicitly stated as not being an adverse action against companies but a market surveillance tool.

Impact Justification

Four securities relieved from 35% margin requirement due to improved encumbrance levels; consolidated list now contains only one security (SHAREINDIA). Medium impact as it reduces trading restrictions for affected securities.