Description

NSE implements 35% margin requirement on 7 securities with high promoter shareholding encumbrance under SEBI SAST Regulation 28(3), effective January 7, 2026. Sagar Cements removed from framework.

Summary

NSE has updated its surveillance framework for companies with high promoter shareholding encumbrance as per SEBI (SAST) Regulation 28(3). Effective January 7, 2026, seven securities will be subject to a minimum 35% margin requirement in both Equity and Equity Derivatives segments. One security (Sagar Cements) has been removed from the framework. The consolidated list now contains 11 securities under this surveillance measure.

Key Points

  • 7 new securities added to high encumbrance surveillance framework (Annexure I)
  • 1 security excluded from the framework: Sagar Cements Limited (Annexure II)
  • 35% minimum margin applies to all open positions and new positions
  • Applies to both Equity and Equity Derivatives segments
  • Measure is in conjunction with all other prevailing surveillance measures
  • Total of 11 securities now under this framework (consolidated list)
  • Framework subject to periodic review by NSE

Regulatory Changes

This circular continues the surveillance framework established under NSE/SURV/42507 (October 24, 2019) and NSE/SURV/44169 (April 17, 2020) for monitoring companies with high promoter shareholding encumbrance as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011.

Compliance Requirements

Trading Members must:

  • Apply 35% minimum margin on all open positions as on January 6, 2026 for the 7 newly added securities
  • Apply 35% minimum margin on new positions created from January 7, 2026
  • Remove margin restrictions on Sagar Cements Limited from January 5, 2026
  • Note that this measure applies in conjunction with other surveillance measures

Companies may:

  • Submit representations regarding placement in the framework by 5:00 PM on January 5, 2026

Important Dates

  • January 2, 2026: Circular issued
  • January 5, 2026, 5:00 PM: Deadline for company representations
  • January 5, 2026: Sagar Cements excluded from framework (effective date)
  • January 6, 2026: Last day before margin applies to existing positions
  • January 7, 2026: 35% margin requirement becomes effective for 7 newly added securities

Securities Affected

Annexure I - Added to Framework (7 securities):

  1. B. L. Kashyap and Sons Limited (BLKASHYAP) - INE350H01032
  2. Hindustan Zinc Limited (HINDZINC) - INE267A01025
  3. SPML Infra Limited (SPMLINFRA) - INE937A01023
  4. STEEL EXCHANGE INDIA LIMITED (STEELXIND) - INE503B01021
  5. Thyrocare Technologies Limited (THYROCARE) - INE594H01019
  6. TruAlt Bioenergy Limited (TRUALT) - INE0MWH01014
  7. Veranda Learning Solutions Limited (VERANDA) - INE0IQ001011

Annexure II - Excluded from Framework (1 security):

  1. Sagar Cements Limited (SAGCEM) - INE229C01021

Consolidated List (11 securities total):

  1. B. L. Kashyap and Sons Limited (BLKASHYAP)
  2. Cohance Lifesciences Limited (COHANCE)
  3. Hindustan Zinc Limited (HINDZINC)
  4. Jayaswal Neco Industries Limited (JAYNECOIND)
  5. Share India Securities Limited (SHAREINDIA)
  6. SPML Infra Limited (SPMLINFRA)
  7. STEEL EXCHANGE INDIA LIMITED (STEELXIND)
  8. Thyrocare Technologies Limited (THYROCARE)
  9. TruAlt Bioenergy Limited (TRUALT)
  10. Veranda Learning Solutions Limited (VERANDA)
  11. Vikram Solar Limited (VIKRAMSOLR)

Impact Assessment

Market Impact:

  • Increased margin requirements (35%) will reduce leverage and may decrease trading volumes in affected securities
  • Higher capital requirements for positions in these stocks, both in cash and F&O segments
  • Potential liquidity impact as traders may reduce exposure due to higher margin costs

Operational Impact:

  • Trading members must update margin files and risk management systems by January 7, 2026
  • Clients holding positions in newly added securities will face margin calls
  • Brokers need to communicate changes to affected clients before effective date

Risk Management:

  • Framework aims to mitigate risks associated with high promoter shareholding encumbrance
  • Protects market integrity by ensuring adequate margins in securities with elevated risk profiles
  • Part of NSE’s ongoing surveillance to prevent market manipulation and protect investors

Note: NSE clarifies that inclusion in this framework is purely for market surveillance purposes and should not be construed as adverse action against the companies.

Impact Justification

High margin requirements (35%) significantly impact trading and liquidity for 11 securities. Affects both cash and derivatives segments with immediate compliance requirements.