Description

NSE imposes 75% margin requirement on securities with high promoter and non-promoter encumbrance. Bedmutha Industries Limited added to surveillance measure effective November 28, 2025.

Summary

NSE has updated its surveillance framework for companies with high promoter and non-promoter encumbrance under Regulation 28(3) of SEBI (SAST) Regulation 2011. Bedmutha Industries Limited has been added to this measure, requiring a minimum 75% margin on all positions in both Equity and Equity Derivatives segments. The consolidated list now includes three securities: Bedmutha Industries Limited, B. L. Kashyap and Sons Limited, and N R Agarwal Industries Limited.

Key Points

  • Bedmutha Industries Limited (BEDMUTHA, ISIN: INE844K01012) added to high encumbrance surveillance measure
  • Minimum 75% margin applicable in Equity and Equity Derivatives segments
  • Margin requirement applies to all open positions as on November 27, 2025 and new positions from November 28, 2025
  • No securities excluded from the measure in this update (Annexure II shows Nil)
  • Consolidated list contains 3 securities: BEDMUTHA, BLKASHYAP, NRAIL
  • This measure works in conjunction with all other prevailing surveillance measures
  • Shortlisting should not be construed as adverse action against the company

Regulatory Changes

This circular continues the framework established in NSE circular NSE/SURV/51189 dated January 31, 2022. The measure targets companies where both promoter and non-promoter shareholdings show high encumbrance levels as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011. The framework is subject to periodic review by the Exchange.

Compliance Requirements

  • Trading members must ensure minimum 75% margin on securities listed in Annexure I and III
  • Margin applies to all open positions existing as on November 27, 2025
  • Margin applies to all new positions created from November 28, 2025 onwards
  • Members must comply with this measure alongside all other existing surveillance measures
  • Queries may be directed to surveillance@nse.co.in

Important Dates

  • November 25, 2025: Circular issued
  • November 26, 2025: Securities in Annexure II (Nil) eligible to move out from framework
  • November 27, 2025: Last day before margin requirement applies to open positions
  • November 28, 2025: 75% margin requirement becomes effective for Bedmutha Industries Limited on all open positions and new positions

Impact Assessment

Trading Impact: The 75% margin requirement significantly increases the capital needed to trade these securities, likely reducing liquidity and trading volumes in affected stocks.

Affected Securities:

  1. Bedmutha Industries Limited (BEDMUTHA) - Newly added
  2. B. L. Kashyap and Sons Limited (BLKASHYAP) - Previously under measure
  3. N R Agarwal Industries Limited (NRAIL) - Previously under measure

Market Participants: Traders and investors holding positions in these securities must arrange for additional margin funds or reduce positions. The measure may deter speculative trading while protecting investors from potential risks associated with high encumbrance levels.

Risk Mitigation: The measure addresses investor protection concerns arising from high encumbrance of both promoter and non-promoter holdings, which could indicate financial stress or potential liquidity issues at the company level.

Impact Justification

High impact due to 75% margin requirement affecting trading in listed securities. Medium importance as it affects only 3 securities currently.