Description

NSE adds RKEC Projects and Shalimar Paints to the high encumbrance surveillance framework effective March 2026, attracting 75% margin requirements. Consolidated list now contains 7 securities.

Summary

NSE has updated the surveillance measure for companies with high Promoter as well as non-Promoter encumbrance under Regulation 28(3) of SEBI (SAST) Regulations 2011 (Circular Ref. No: 166/2026). Two securities — RKEC Projects Limited and Shalimar Paints Limited — are newly added to the framework. No securities are being excluded in this update. The consolidated list under this measure now comprises 7 securities.

Key Points

  • RKEC Projects Limited (INE786W01010) and Shalimar Paints Limited (INE849C01026) are newly included under the encumbrance surveillance measure.
  • Shalimar Paints satisfies the inclusion criteria at BSE only.
  • No securities are being excluded from the framework in this update (Annexure II is Nil).
  • Securities newly included will attract a minimum 75% margin in Equity and Equity Derivatives segments.
  • The margin applies to all open positions as on March 06, 2026 and new positions created from March 09, 2026.
  • The consolidated list (Annexure III) contains 7 securities: GAYAHWS, INDOTECH, ONELIFECAP, RKEC, SHALPAINTS, TFCILTD, and VISASTEEL.
  • This measure is in conjunction with all other prevailing measures imposed by Exchanges.
  • Shortlisting under this measure should not be construed as an adverse action against the concerned company.

Regulatory Changes

This circular is issued in continuation of Exchange circular NSE/SURV/51189 dated January 31, 2022. The current update revises the list of securities under the high encumbrance framework per Reg. 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011, adding two new securities and maintaining the existing five.

Compliance Requirements

  • Trading members must ensure a minimum 75% margin is collected on all open positions in RKEC and SHALPAINTS as on March 06, 2026.
  • The 75% margin requirement must also be applied to all new positions in these securities created from March 09, 2026.
  • Members should apply the margin requirement across both the Equity segment and Equity Derivatives segment.
  • For queries, members may contact surveillance@nse.co.in.

Important Dates

  • March 04, 2026: Circular issued.
  • March 05, 2026: New inclusions (RKEC, SHALPAINTS) effective under the framework; exclusions (Nil) effective.
  • March 06, 2026: Reference date for open positions subject to 75% margin.
  • March 09, 2026: 75% margin requirement becomes effective for open positions as on March 06, 2026 and all new positions.

Impact Assessment

Traders and investors holding positions in RKEC Projects Limited and Shalimar Paints Limited will face significantly higher margin requirements (minimum 75%) starting March 09, 2026, increasing the cost of holding or creating positions in these securities. This may lead to forced position reductions by members who cannot meet the enhanced margin. The broader consolidated list of 7 securities under this framework signals continued regulatory scrutiny on companies with elevated promoter and non-promoter share encumbrance levels. Market participants should review their exposure to all 7 securities in the consolidated list and ensure adequate margin availability.

Impact Justification

Imposes 75% margin requirement on multiple securities in equity and equity derivatives segments, directly affecting trading costs and positions for members holding these stocks.