Description

Updated list of securities subject to 75% margin requirement due to high promoter and non-promoter encumbrance under SEBI SAST Regulation 2011. N R Agarwal Industries Limited excluded from the measure.

Summary

NSE has updated the list of securities subject to surveillance measures for high promoter and non-promoter encumbrance under Regulation 28(3) of SEBI (SAST) Regulation 2011. No new securities are being added to the measure, while N R Agarwal Industries Limited (NRAIL) is being excluded effective December 01, 2025. The consolidated list continues to include Bedmutha Industries Limited (BEDMUTHA) and B. L. Kashyap and Sons Limited (BLKASHYAP), both subject to minimum 75% margin requirements in Equity and Equity Derivatives segments.

Key Points

  • No securities shortlisted for inclusion under this surveillance measure
  • N R Agarwal Industries Limited (NRAIL, ISIN: INE740D01017) excluded from the measure effective December 01, 2025
  • Consolidated list maintains two securities: BEDMUTHA (INE844K01012) and BLKASHYAP (INE350H01032)
  • 75% minimum margin requirement applies to all open positions and new positions for securities under this framework
  • Measure applies to both Equity and Equity Derivatives segments
  • This is a continuation of NSE circular NSE/SURV/51189 dated January 31, 2022

Regulatory Changes

No new regulatory changes introduced. This circular provides periodic review updates to the existing surveillance framework established under SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, Regulation 28(3), which deals with encumbrance of shares by promoters and non-promoters.

Compliance Requirements

  • Trading members must ensure compliance with 75% minimum margin requirement for securities listed in Annexure III (BEDMUTHA and BLKASHYAP)
  • Margin requirement applies to all open positions as on December 02, 2025
  • Margin requirement applies to all new positions created from December 03, 2025 onwards
  • This measure operates in conjunction with all other prevailing surveillance measures imposed by the Exchange
  • Market participants should note that shortlisting under this measure is not construed as adverse action against the concerned company

Important Dates

  • November 28, 2025: Circular issued (Ref No: 925/2025)
  • December 01, 2025: Effective date for exclusion of NRAIL from the measure
  • December 02, 2025: Reference date for existing open positions subject to margin requirement
  • December 03, 2025: Effective date for 75% margin requirement on securities in Annexure I (none currently) and continued application for Annexure III securities

Impact Assessment

Market Impact: Limited direct market impact as no new securities are being added to the surveillance measure. The exclusion of NRAIL provides relief to traders holding positions in this security, as the 75% margin requirement will no longer apply.

Operational Impact: Trading members holding positions in BEDMUTHA and BLKASHYAP must continue maintaining enhanced margin requirements. Members with positions in NRAIL can reduce margin allocations after December 01, 2025.

Risk Assessment: The measure continues to serve its purpose of managing risk associated with high encumbrance levels. The current consolidated list of only two securities suggests improved compliance or reduced encumbrance issues across the broader market compared to when this framework was established in January 2022.

Impact Justification

Routine surveillance measure update with no new securities added but one security excluded. Existing securities BEDMUTHA and BLKASHYAP continue under 75% margin requirement.