Description

NSE surveillance measure requiring 75% margin for securities with high promoter and non-promoter encumbrance under SEBI SAST Regulation 2011. Onelife Capital Advisors Limited added to the framework.

Summary

NSE has issued a surveillance measure targeting companies with high promoter and non-promoter encumbrance as per Regulation 28(3) of SEBI (SAST) Regulation 2011. This circular adds Onelife Capital Advisors Limited (ONELIFECAP) to the framework, requiring a minimum 75% margin in Equity and Equity Derivatives segments. The measure is a continuation of NSE circular NSE/SURV/51189 dated January 31, 2022.

Key Points

  • Onelife Capital Advisors Limited (ONELIFECAP, ISIN: INE912L01015) has been included in the surveillance measure
  • 75% minimum margin requirement applicable in both Equity and Equity Derivatives segments
  • Margin applies to all open positions as on November 10, 2025 and new positions from November 11, 2025
  • No securities are being excluded from the framework in this update (Annexure II shows Nil)
  • The consolidated list now contains only one security: ONELIFECAP
  • This measure works in conjunction with all other prevailing exchange measures
  • Shortlisting should not be construed as adverse action against the company

Regulatory Changes

This circular implements surveillance measures under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, which deals with encumbrance on shares. The framework targets companies where both promoter and non-promoter shareholdings show high encumbrance levels, indicating potential financial stress or pledging of shares.

Compliance Requirements

For Trading Members:

  • Ensure 75% minimum margin is collected on ONELIFECAP in Equity segment
  • Ensure 75% minimum margin is collected on ONELIFECAP in Equity Derivatives segment
  • Apply margin to all open positions as on November 10, 2025
  • Apply margin to all new positions created from November 11, 2025 onwards
  • Monitor for updates to the framework through periodic reviews

For Market Participants:

  • Adjust trading strategies and position limits for affected security
  • Ensure adequate margin availability before taking positions
  • Note that this measure is subject to periodic review and may change

Important Dates

  • November 06, 2025: Circular issue date
  • November 07, 2025: Effective date for exclusions (none in this update)
  • November 10, 2025: Last day before margin requirements apply to open positions
  • November 11, 2025: 75% margin requirement becomes effective for ONELIFECAP on all open positions and new positions

Impact Assessment

Market Impact:

  • High impact on ONELIFECAP specifically due to significantly increased margin requirements (75% vs standard margins)
  • Likely to reduce liquidity and trading volumes in the affected security
  • May increase volatility due to forced position unwinding by traders unable to meet margin requirements
  • Derivative positions may see reduced participation

Operational Impact:

  • Trading members must update risk management systems to enforce 75% margin
  • Clients with existing positions need to be informed and margin calls issued
  • Potential for position liquidation if clients cannot meet enhanced margin requirements

Financial Impact:

  • Significantly higher capital requirements for traders holding positions in ONELIFECAP
  • Reduced leverage available for trading the affected security
  • Potential losses if positions are liquidated due to margin shortfall

For queries, trading members may contact NSE Surveillance at surveillance@nse.co.in.

Impact Justification

High impact for affected security (ONELIFECAP) due to 75% margin requirement, but limited to single stock. Medium importance as it's part of ongoing surveillance framework.