Description

NSE updates the list of securities under the high promoter/non-promoter encumbrance surveillance measure per SEBI SAST Reg. 28(3), adding JAYNECOIND with 75% margin requirement from May 4, 2026, and removing SHALPAINTS and INDOTECH effective April 29, 2026.

Summary

NSE Surveillance has updated the list of securities subject to the high Promoter and non-Promoter Encumbrance measure under Reg. 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. One security (JAYNECOIND) has been added to the framework, attracting a minimum 75% margin in Equity and Equity Derivatives segments from May 4, 2026. Two securities (SHALPAINTS and INDOTECH) have been removed from the encumbrance framework effective April 29, 2026, though they are being moved to the LTASM (Long-Term Additional Surveillance Measure) framework. A consolidated list of 8 securities currently under this measure is provided.

Key Points

  • New inclusion (Annexure I): JAYNECOIND (Jayaswal Neco Industries Limited, ISIN: INE854B01010) will attract a minimum 75% margin in Equity and Equity Derivatives segments w.e.f. May 4, 2026 on all open positions as on April 30, 2026 and new positions from May 4, 2026.
  • Exclusions (Annexure II): SHALPAINTS (Shalimar Paints Limited, ISIN: INE849C01026) and INDOTECH (Indo Tech Transformers Limited, ISIN: INE332H01014) are removed from the encumbrance framework w.e.f. April 29, 2026; both are moved to the LTASM framework.
  • Consolidated framework list (Annexure III): 8 securities remain under the encumbrance measure: GAYAHWS, JAYNECOIND, RKEC, SAKHTISUG, STEELXIND, TFCILTD, VISASTEEL, VPRPL.
  • This measure operates in conjunction with all other prevailing surveillance measures and is subject to periodic review.
  • Shortlisting under this measure should not be construed as an adverse action against the concerned company.

Regulatory Changes

This circular continues the framework established under NSE circular NSE/SURV/51189 dated January 31, 2022. The update reflects periodic review under Reg. 28(3) of SEBI (SAST) Regulations, 2011, which requires exchanges to monitor and act on high levels of promoter and non-promoter share encumbrance. SHALPAINTS and INDOTECH are transitioning from the encumbrance framework to LTASM rather than a clean exit.

Compliance Requirements

  • Trading Members must ensure a minimum 75% margin is collected on all equity and equity derivatives positions in JAYNECOIND for open positions as of April 30, 2026 and all new positions from May 4, 2026.
  • Members must update their risk and margining systems to reflect the addition of JAYNECOIND and the removal of SHALPAINTS and INDOTECH from this specific framework.
  • Members should note that SHALPAINTS and INDOTECH remain under surveillance via the LTASM framework and continue to carry associated restrictions.
  • Queries may be directed to surveillance@nse.co.in.

Important Dates

  • April 28, 2026: Circular issued.
  • April 29, 2026: SHALPAINTS and INDOTECH removed from encumbrance framework; move to LTASM takes effect.
  • April 30, 2026: Reference date for open positions in JAYNECOIND subject to enhanced margin.
  • May 4, 2026: Minimum 75% margin requirement effective for JAYNECOIND in Equity and Equity Derivatives segments.

Impact Assessment

The 75% minimum margin requirement for JAYNECOIND significantly increases the cost of holding and creating positions in this stock across both the cash and derivatives segments, likely reducing liquidity and increasing transaction costs for traders. The removal of SHALPAINTS and INDOTECH from the encumbrance framework offers partial relief, but their simultaneous transfer to LTASM means they remain under heightened surveillance. The 8-stock consolidated list signals continued regulatory scrutiny of companies with elevated share pledging by promoters and non-promoters, which can be a risk indicator for investors. Market participants holding positions in any of the 8 listed securities should review their margin obligations promptly.

Impact Justification

Imposes a minimum 75% margin requirement on both equity and equity derivatives segments for newly added securities, directly affecting trading costs and position-taking for multiple listed companies. Removal of two securities from the framework also has immediate trading impact from April 29, 2026.