Description
NSE circular updating the list of securities under surveillance measure for high promoter and non-promoter encumbrance, with B.L. Kashyap excluded and minimum 75% margin requirement for listed securities.
Summary
NSE has issued an update to the surveillance measure for companies with high Promoter and non-Promoter encumbrance as per Regulation 28(3) of SEBI (SAST) Regulation 2011. This circular excludes B.L. Kashyap and Sons Limited (BLKASHYAP) from the framework effective January 01, 2026. No new securities have been added to the measure. The consolidated list now contains four securities: Future Market Networks Limited (FMNL), N R Agarwal Industries Limited (NRAIL), Shalimar Paints Limited (SHALPAINTS), and Bedmutha Industries Limited (BEDMUTHA), which will continue to attract minimum 75% margin in Equity and Equity Derivatives segments.
Key Points
- No new securities added to the surveillance measure (Annexure I is Nil)
- B.L. Kashyap and Sons Limited (BLKASHYAP, ISIN: INE350H01032) excluded from the measure
- Consolidated list contains 4 securities with high encumbrance levels
- Minimum 75% margin requirement applies in Equity and Equity Derivatives segment
- Margin applies to all open positions as on January 02, 2026 and new positions from January 05, 2026
- This measure works in conjunction with other prevailing exchange measures
- Subject to periodic review by the Exchange
Regulatory Changes
This circular is a continuation of Exchange circular no NSE/SURV/51189 dated January 31, 2022. The framework identifies securities where companies have high levels of pledged shares by both promoters and non-promoters as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011. The shortlisting under this measure should not be construed as an adverse action against the concerned company or entity.
Compliance Requirements
For Trading Members:
- Ensure minimum 75% margin is collected for the four securities listed in Annexure III
- Apply margin requirement to all open positions as on January 02, 2026
- Apply margin requirement to all new positions created from January 05, 2026
- Apply margin in both Equity and Equity Derivatives segments
- Comply with this measure in conjunction with all other prevailing exchange measures
Securities Subject to Measure (Annexure III):
- Future Market Networks Limited (FMNL, ISIN: INE360L01017)
- N R Agarwal Industries Limited (NRAIL, ISIN: INE740D01017)
- Shalimar Paints Limited (SHALPAINTS, ISIN: INE849C01026)
- Bedmutha Industries Limited (BEDMUTHA, ISIN: INE844K01012)
Important Dates
- December 31, 2025: Circular issued
- January 01, 2026: Effective date for exclusion of BLKASHYAP from the measure
- January 02, 2026: Cut-off date for identifying open positions subject to 75% margin
- January 05, 2026: Date from which 75% margin applies to new positions
Impact Assessment
Market Impact: The exclusion of B.L. Kashyap and Sons Limited indicates improved encumbrance levels, allowing normal margin requirements for this security. This is positive for investors and traders in BLKASHYAP as it reduces margin burden and improves liquidity.
Trading Impact: The four securities remaining on the consolidated list will continue to face higher margin requirements (75%), which may:
- Reduce trading volumes in these securities
- Limit leverage available to traders
- Increase capital requirements for maintaining positions
- Impact liquidity in both cash and derivatives segments
Investor Impact: Investors holding or trading in FMNL, NRAIL, SHALPAINTS, and BEDMUTHA need to be aware of higher margin requirements. This measure aims to reduce speculative activity in securities with high pledge levels, thereby protecting investor interests and maintaining market stability.
Impact Justification
Updates surveillance measures for securities with high encumbrance levels. One security excluded (BLKASHYAP), four remain on consolidated list with 75% margin requirement. Impacts trading members and investors in affected securities.