Description

NSE surveillance measure update for securities with high promoter and non-promoter encumbrance under SEBI SAST Regulation 2011, with 75% margin requirement effective November 26, 2025.

Summary

NSE has issued an update to its surveillance measure targeting companies with high promoter and non-promoter share encumbrance under Regulation 28(3) of SEBI (SAST) Regulation 2011. B. L. Kashyap and Sons Limited (BLKASHYAP) has been added to the framework effective November 26, 2025, and will attract a minimum 75% margin requirement in both Equity and Equity Derivatives segments. The consolidated list now includes two securities: BLKASHYAP and N R Agarwal Industries Limited (NRAIL).

Key Points

  • B. L. Kashyap and Sons Limited (BLKASHYAP, ISIN: INE350H01032) added to high encumbrance surveillance measure
  • 75% minimum margin requirement applicable in Equity and Equity Derivatives segments
  • Margin applies to all open positions as on November 25, 2025 and new positions from November 26, 2025
  • No securities are being removed from the framework in this update
  • Consolidated list contains 2 securities: BLKASHYAP and NRAIL
  • Circular continues provisions of NSE/SURV/51189 dated January 31, 2022
  • Framework subject to periodic review
  • Measure works in conjunction with all other prevailing exchange measures

Regulatory Changes

This circular updates the list of securities under the surveillance framework for companies with high promoter and non-promoter encumbrance as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011. The framework mandates enhanced margin requirements to mitigate risks associated with highly encumbered shareholding patterns.

Compliance Requirements

  • Trading members must ensure 75% minimum margin on BLKASHYAP in Equity segment effective November 26, 2025
  • Trading members must ensure 75% minimum margin on BLKASHYAP in Equity Derivatives segment effective November 26, 2025
  • Margin requirement applies to:
    • All open positions as on November 25, 2025
    • All new positions created from November 26, 2025 onwards
  • Members should monitor the consolidated list of affected securities (currently BLKASHYAP and NRAIL)
  • Queries should be directed to surveillance@nse.co.in

Important Dates

  • November 21, 2025: Circular issued
  • November 24, 2025: Effective date for exclusions (none in this update)
  • November 25, 2025: Last day before margin requirements apply; all open positions as of this date subject to new margins
  • November 26, 2025: Enhanced 75% margin requirement becomes effective for BLKASHYAP

Impact Assessment

Market Impact: High. The 75% margin requirement significantly increases capital requirements for traders holding positions in BLKASHYAP, potentially reducing liquidity and trading volumes in the affected security.

Operational Impact: Trading members must adjust their risk management systems and margin collection processes to accommodate the enhanced margin requirements. Clients with existing positions in BLKASHYAP will need to provide additional margins by November 26, 2025.

Investor Impact: Retail and institutional investors holding or trading BLKASHYAP will face substantially higher capital requirements, potentially forcing position closures or reductions. The measure signals elevated regulatory concern about shareholding encumbrance levels in the company.

Derivatives Impact: The measure affects both cash and derivatives markets, limiting leveraged trading strategies in BLKASHYAP futures and options contracts.

Note: The exchange clarifies that inclusion in this framework should not be construed as adverse action against the company but rather as a risk mitigation measure based on objective criteria regarding share encumbrance levels.

Impact Justification

Imposes significant 75% margin requirement on affected securities in both equity and derivatives segments, directly impacting trading positions and capital requirements for market participants.