Description

NSE updates the surveillance measure for companies with high Promoter/non-Promoter encumbrance under SEBI SAST Reg. 28(3): no new additions, three securities (FMNL, RKEC, SETCO) exit the framework effective March 02, 2026, while five remain under 75% margin requirement.

Summary

NSE has issued a periodic update (Circular Ref. No. 157/2026) under the surveillance measure for companies with high Promoter as well as non-Promoter ‘Encumbrance’ as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This update is in continuation of Exchange circular NSE/SURV/51189 dated January 31, 2022. No new securities are being added to the framework, three securities are being removed effective March 02, 2026, and five securities remain in the consolidated active list.

Key Points

  • No new securities are being added to the encumbrance surveillance framework (Annexure I: Nil)
  • Three securities — FMNL, RKEC, and SETCO — are eligible to exit the framework effective March 02, 2026
  • Five securities remain under the consolidated framework with mandatory minimum 75% margin in Equity and Equity Derivatives segments
  • The shortlisting of securities under this measure should not be construed as an adverse action against the concerned company or entity
  • Upon exit, price bands for removed scrips revert to pre-shortlisting levels, unless the scrip is part of another surveillance measure
  • The measure applies to both open positions as on the reference date and new positions created thereafter

Regulatory Changes

This circular operates under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, which mandates monitoring of companies where promoters and/or non-promoters have created significant encumbrance on their shareholding. NSE applies a minimum 75% margin requirement in Equity and Equity Derivatives segments for securities under this framework. Securities exiting the framework have their price bands reinstated to applicable pre-shortlisting levels, subject to no concurrent surveillance measure being in force.

Compliance Requirements

  • Trading Members must take note of the updated list and ensure applicable margins are collected for affected securities
  • Minimum 75% margin must be maintained for all securities listed in the active consolidated framework (Annexure III)
  • For securities exiting the framework (Annexure II), normal margin and price band rules apply from March 02, 2026, unless another surveillance framework applies
  • Members may direct queries to surveillance@nse.co.in

Important Dates

  • February 27, 2026: Circular issuance date
  • March 02, 2026: Effective date for exit of three securities (FMNL, RKEC, SETCO) from the framework
  • March 04, 2026: Reference date for open positions subject to 75% margin (for any new inclusions; none in this update)
  • March 05, 2026: Effective date for margin applicability on new inclusions (Annexure I is Nil — not applicable this cycle)

Impact Assessment

Stocks exiting the framework (positive impact):

  • FMNL (Future Market Networks Limited, INE360L01017) — relieved of enhanced margin burden
  • RKEC (RKEC Projects Limited, INE786W01010) — relieved of enhanced margin burden
  • SETCO (Setco Automotive Limited, INE878E01021) — relieved of enhanced margin burden

Removal may improve trading liquidity and reduce cost of trading for retail and institutional participants in these scrips. Price bands revert to normal applicable bands.

Stocks remaining in the framework (continued impact):

  • GAYAHWS — Gayatri Highways Limited (INE287Z01012)
  • INDOTECH — Indo Tech Transformers Limited (INE332H01014)
  • ONELIFECAP — Onelife Capital Advisors Limited (INE912L01015)
  • TFCILTD — Tourism Finance Corporation of India Limited (INE305A01023)
  • VISASTEEL — Visa Steel Limited (INE286H01012)

Trading in these five securities continues to be subject to the 75% margin requirement, limiting leveraged exposure and constraining liquidity. The measure is reviewed periodically and may be revised based on changes in encumbrance levels reported by promoters.

Impact Justification

Routine periodic surveillance update under SEBI SAST encumbrance framework. No new additions, but three securities exit which is market-positive for those scrips. Five securities continue under mandatory 75% margin, affecting liquidity for traders holding those positions.