Description

NSE implements enhanced surveillance measures with 75% margin requirement for securities with high promoter and non-promoter encumbrance, adding Visa Steel Limited to the framework.

Summary

The National Stock Exchange has issued a surveillance circular implementing measures for companies with high promoter and non-promoter encumbrance under Regulation 28(3) of SEBI (SAST) Regulation 2011. Visa Steel Limited has been added to the enhanced surveillance framework effective January 22, 2026, requiring a minimum 75% margin in both Equity and Equity Derivatives segments. No securities are being excluded from the framework at this time. This is a continuation of the exchange’s circular NSE/SURV/51189 dated January 31, 2022.

Key Points

  • Visa Steel Limited (INE286H01012) added to high encumbrance surveillance framework
  • Minimum 75% margin requirement applies in both Equity and Equity Derivatives segments
  • Margin applies to all open positions as on January 21, 2026 and new positions from January 22, 2026
  • No securities excluded from the framework in this update
  • Total of 6 securities now under this surveillance measure
  • Measure applies in conjunction with other prevailing exchange measures
  • Framework subject to periodic review

Regulatory Changes

This circular enforces SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, specifically Regulation 28(3) concerning disclosure of encumbrance of shares. The enhanced surveillance measure targets companies where both promoter and non-promoter shareholdings show high levels of encumbrance (pledging or other security interests).

Compliance Requirements

  • Trading members must ensure 75% minimum margin for Visa Steel Limited starting January 22, 2026
  • Margin requirement applies to:
    • All open positions existing as on January 21, 2026
    • All new positions created from January 22, 2026 onwards
  • Members must comply with this measure alongside all other prevailing exchange measures
  • Questions should be directed to surveillance@nse.co.in

Important Dates

  • January 19, 2026: Circular issued (Ref: 47/2026)
  • January 20, 2026: Securities eligible for exclusion move out (none in this circular)
  • January 21, 2026: Last day before margin requirement applies to open positions
  • January 22, 2026: Enhanced 75% margin requirement becomes effective for Visa Steel Limited

Impact Assessment

Market Impact: The addition of Visa Steel Limited to the high encumbrance framework will significantly increase margin requirements for traders holding positions in this security, potentially reducing trading volumes and liquidity. The 75% margin requirement is substantially higher than standard margins, making it more capital-intensive to trade.

Securities Affected: The consolidated framework now covers 6 securities:

  1. Future Market Networks Limited (FMNL) - INE360L01017
  2. N R Agarwal Industries Limited (NRAIL) - INE740D01017
  3. RKEC Projects Limited (RKEC) - INE786W01010
  4. Setco Automotive Limited (SETCO) - INE878E01021
  5. Shalimar Paints Limited (SHALPAINTS) - INE849C01026
  6. Visa Steel Limited (VISASTEEL) - INE286H01012

Investor Impact: The measure is not an adverse action against the companies but serves as a risk management tool to protect market participants from potential risks associated with high encumbrance levels. Investors and traders should exercise additional caution when dealing with these securities.

Impact Justification

Affects specific securities with high encumbrance requiring increased margin, impacting trading in these stocks but limited to a small set of companies