Description

NSE circular updating the list of securities under surveillance measure for high promoter and non-promoter encumbrance, with two companies being removed from the framework effective February 01, 2026.

Summary

NSE has issued an update to its surveillance measure for companies with high promoter and non-promoter encumbrance under Regulation 28(3) of SEBI (SAST) Regulation 2011. This circular, in continuation of NSE/SURV/51189 dated January 31, 2022, removes two securities from the framework while maintaining six securities under the measure. The securities under this framework attract a minimum 75% margin in Equity and Equity Derivatives segments.

Key Points

  • No new securities are being added to the high encumbrance surveillance measure (Annexure I shows Nil)
  • Two securities are being removed from the framework effective February 01, 2026: N R Agarwal Industries Limited (NRAIL) and Shalimar Paints Limited (SHALPAINTS)
  • Six securities remain under the surveillance framework with 75% margin requirements
  • The measure applies to both Equity and Equity Derivatives segments
  • This framework operates in conjunction with all other prevailing exchange measures
  • Shortlisting under this measure should not be construed as adverse action against the company

Regulatory Changes

This circular updates the list of securities subject to surveillance measures under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 2011, specifically targeting companies with high levels of both promoter and non-promoter share encumbrance.

Compliance Requirements

For Trading Members:

  • Maintain minimum 75% margin on all open positions as on February 02, 2026 for securities listed in Annexure III
  • Apply minimum 75% margin on new positions created from February 03, 2026 onwards for securities under the framework
  • Margins apply to both Equity and Equity Derivatives segments

Securities Currently Under Framework (Annexure III):

  1. Future Market Networks Limited (FMNL) - INE360L01017
  2. Gayatri Highways Limited (GAYAHWS) - INE287Z01012
  3. Indo Tech Transformers Limited (INDOTECH) - INE332H01014
  4. RKEC Projects Limited (RKEC) - INE786W01010
  5. Setco Automotive Limited (SETCO) - INE878E01021
  6. Visa Steel Limited (VISASTEEL) - INE286H01012

Important Dates

  • January 30, 2026: Circular issuance date
  • February 01, 2026: Effective date for removal of NRAIL and SHALPAINTS from the framework
  • February 02, 2026: Last date for existing open positions before new margin requirements apply
  • February 03, 2026: Margin requirements apply to all new positions and existing open positions

Impact Assessment

Positive Impact:

  • N R Agarwal Industries Limited (NRAIL) and Shalimar Paints Limited (SHALPAINTS) will see reduced margin requirements, potentially improving liquidity and trading activity in these securities
  • Removal from the framework indicates improved encumbrance levels for these two companies

Continued Restrictions:

  • Six companies remain under the 75% margin framework, which continues to restrict trading activity and leverage for these securities
  • High margin requirements may reduce trading volumes and liquidity for the six securities in Annexure III

Market Operations:

  • The measure is subject to periodic review by NSE
  • Trading members need to ensure adequate margin collection for the six securities remaining under the framework
  • The framework operates alongside other surveillance measures, creating a comprehensive risk management approach

Impact Justification

Routine surveillance measure update with two companies being removed from high encumbrance framework, reducing restrictions for N R Agarwal Industries and Shalimar Paints while six companies remain under 75% margin requirements