Description

NSE introduces enhanced margin requirements of 75% for securities with high promoter and non-promoter encumbrance under SEBI SAST Regulation 28(3), with RKEC Projects Limited added to the surveillance framework.

Summary

NSE has issued a circular regarding surveillance measures for companies with high promoter and non-promoter encumbrance as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011. RKEC Projects Limited has been added to this framework effective January 21, 2026, and will attract a minimum 75% margin requirement in both Equity and Equity Derivatives segments. This measure continues NSE’s efforts to monitor securities with elevated encumbrance levels that may pose increased risk.

Key Points

  • RKEC Projects Limited (INE786W01010) added to high encumbrance surveillance framework
  • Minimum 75% margin applicable on all open positions as on January 20, 2026 and new positions from January 21, 2026
  • Applies to both Equity and Equity Derivatives segments
  • No securities are being removed from the framework (Annexure II shows Nil)
  • Five companies currently under this surveillance measure
  • Measure is continuation of Exchange circular NSE/SURV/51189 dated January 31, 2022
  • Framework subject to periodic review

Regulatory Changes

This circular implements surveillance measures under Regulation 28(3) of SEBI (SAST) Regulation 2011, which deals with disclosure requirements for encumbrance of shares. The enhanced margin requirement of 75% serves as a risk mitigation measure for securities where both promoter and non-promoter shareholding shows high levels of encumbrance. This framework works in conjunction with all other prevailing surveillance measures imposed by NSE.

Compliance Requirements

  • Trading members must ensure 75% minimum margin is collected for RKEC Projects Limited starting January 21, 2026
  • Margin requirement applies to all existing open positions as on January 20, 2026
  • All new positions created from January 21, 2026 must comply with the 75% margin rule
  • Members should monitor all five securities currently under this framework: RKEC, FMNL, NRAIL, SETCO, and SHALPAINTS
  • Queries may be directed to surveillance@nse.co.in

Important Dates

  • January 16, 2026: Circular issue date
  • January 19, 2026: Effective date for securities moving out (none in this circular)
  • January 20, 2026: Last date before margin requirements apply to existing positions
  • January 21, 2026: Enhanced 75% margin requirement becomes effective for RKEC Projects Limited

Impact Assessment

Market Impact: Limited to specific securities under surveillance. The addition of only one security (RKEC) indicates targeted application rather than widespread market impact.

Trading Impact: Traders and investors holding positions in RKEC Projects Limited will face significantly higher margin requirements (75%), which may lead to position unwinding or reduced trading volumes in the security. This applies to both cash and derivatives segments.

Investor Awareness: The circular clarifies that inclusion in this framework should not be construed as adverse action against the company, but rather reflects objective criteria related to encumbrance levels as per regulatory norms.

Risk Mitigation: The 75% margin requirement serves to protect market participants from potential risks associated with high levels of share encumbrance by both promoters and non-promoters, which could affect shareholding stability and corporate governance.

Impact Justification

Affects specific securities with enhanced margin requirements due to high encumbrance levels. Limited to five companies currently under surveillance framework. RKEC newly added while no securities removed.