Description

NSE implements surveillance measure requiring 75% margin for N R Agarwal Industries Limited due to high promoter and non-promoter encumbrance, effective November 18, 2025.

Summary

NSE has issued a surveillance circular regarding companies with high promoter and non-promoter encumbrance as per Regulation 28(3) of SEBI (SAST) Regulation 2011. N R Agarwal Industries Limited (NRAIL) has been identified as meeting the criteria for inclusion under this measure and will attract a minimum 75% margin requirement in both Equity and Equity Derivatives segments starting November 18, 2025.

Key Points

  • N R Agarwal Industries Limited (NRAIL, ISIN: INE740D01017) added to high encumbrance surveillance framework
  • 75% minimum margin requirement applicable on all open positions as on November 17, 2025 and new positions from November 18, 2025
  • Applies to both Equity and Equity Derivatives segments
  • No securities are being excluded from the framework in this update
  • This measure is in continuation of Exchange circular NSE/SURV/51189 dated January 31, 2022
  • Measure will be subject to periodic review and works in conjunction with other prevailing exchange measures

Regulatory Changes

This circular enforces Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, which pertains to encumbrance disclosures. The exchange has identified securities where both promoter and non-promoter encumbrances are at elevated levels, triggering enhanced surveillance measures through increased margin requirements.

Compliance Requirements

  • Trading members must ensure 75% minimum margin is collected on all positions in NRAIL
  • Margin applies to existing open positions as on November 17, 2025
  • Margin applies to all new positions created from November 18, 2025 onwards
  • Members should communicate this requirement to their clients trading in the affected security
  • Queries regarding this measure should be directed to surveillance@nse.co.in

Important Dates

  • November 13, 2025: Circular issuance date
  • November 14, 2025: Effective date for exclusions (though no securities excluded in this update)
  • November 17, 2025: Last day before margin requirements apply to open positions
  • November 18, 2025: 75% margin requirement becomes effective for NRAIL

Impact Assessment

Market Impact: The 75% margin requirement significantly increases the capital requirement for trading NRAIL, which will likely reduce trading volumes and liquidity in this security. Traders and investors holding positions will need to maintain substantially higher margins.

Operational Impact: Brokers and trading members must update their risk management systems to enforce the higher margin requirements. Position limits and exposure calculations will need adjustment.

Investor Impact: Retail and institutional investors will face reduced leverage, potentially forcing position closures if additional margin cannot be provided. This measure serves as a cautionary signal about elevated encumbrance levels in the company.

Note: The exchange clarifies that shortlisting under this measure should not be construed as adverse action against the company, but rather as a risk mitigation framework for market participants.

Impact Justification

High margin requirement of 75% imposed on NRAIL due to elevated encumbrance levels, significantly affecting trading and liquidity for this security