Description
NSE updates the list of securities under the high promoter/non-promoter encumbrance surveillance measure per SEBI SAST Regulation 28(3), adding Indo Tech Transformers with 75% margin requirement effective April 7, 2026.
Summary
NSE’s Surveillance department has updated the framework for companies with high promoter as well as non-promoter encumbrance under Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This circular (Ref No: NSE/SURV/73579, Circular Ref. No: 237/2026) continues from the earlier circular NSE/SURV/51189 dated January 31, 2022. Indo Tech Transformers Limited (INDOTECH) is newly added to the framework, attracting a minimum 75% margin in the Equity and Equity Derivatives segment from April 7, 2026. No securities are being removed from the framework in this update.
Key Points
- New inclusion: Indo Tech Transformers Limited (INDOTECH, ISIN: INE332H01014) added to the encumbrance surveillance measure.
- Margin requirement: Minimum 75% margin applicable in both Equity and Equity Derivatives segments for INDOTECH.
- No exclusions: Annexure II lists nil securities being removed from the framework effective April 2, 2026.
- Consolidated list: 6 securities remain under the framework after this update.
- Periodic review: The measure is subject to periodic review and applies in conjunction with all other prevailing exchange measures.
- Clarification: Inclusion in this measure should not be construed as adverse action against the concerned company.
Regulatory Changes
This circular updates the list of securities subject to the high encumbrance surveillance measure under Reg. 28(3) of SEBI (SAST) Regulations, 2011. The measure requires a minimum 75% margin on equity and equity derivative positions for the shortlisted securities. The framework was originally established via NSE/SURV/51189 dated January 31, 2022.
Compliance Requirements
- Trading Members must ensure the minimum 75% margin is collected on all open positions in INDOTECH as on April 6, 2026, and on all new positions created from April 7, 2026 onwards.
- Members must apply the margin requirement across both Equity and Equity Derivatives segments.
- This measure applies alongside all other existing surveillance and margin measures imposed by the exchange.
- Members may direct queries to surveillance@nse.co.in.
Important Dates
| Date | Event |
|---|---|
| April 01, 2026 | Circular issued |
| April 02, 2026 | Effective date referenced for Annexure II exclusions (nil this cycle) |
| April 06, 2026 | Cut-off date for open positions subject to 75% margin for INDOTECH |
| April 07, 2026 | 75% minimum margin becomes effective for INDOTECH in Equity and Equity Derivatives |
Impact Assessment
INDOTECH (Indo Tech Transformers Limited): Newly shortlisted; traders holding or initiating positions will face a 75% minimum margin, significantly increasing the cost of carrying positions in this stock.
Consolidated list of 6 securities under the framework:
| Sr. No. | Symbol | Security Name | ISIN |
|---|---|---|---|
| 1 | GAYAHWS | Gayatri Highways Limited | INE287Z01012 |
| 2 | INDOTECH | Indo Tech Transformers Limited | INE332H01014 |
| 3 | RKEC | RKEC Projects Limited | INE786W01010 |
| 4 | SAKHTISUG | Sakthi Sugars Limited | INE623A01011 |
| 5 | SHALPAINTS | Shalimar Paints Limited | INE849C01026 |
| 6 | VISASTEEL | Visa Steel Limited | INE286H01012 |
The elevated margin requirement reduces leverage available to market participants in these securities, limiting speculative activity and potentially reducing liquidity. Market participants should review their positions in INDOTECH ahead of April 6, 2026.
Impact Justification
Mandates 75% minimum margin on equity and equity derivatives for newly included stock INDOTECH from April 7, 2026, directly affecting trading costs and open positions for multiple securities.