Description
NSE updates the surveillance measure for companies with high promoter and non-promoter encumbrance under SEBI SAST Regulation 28(3). Three securities exit the framework effective May 4, 2026, while four securities remain on the consolidated list.
Summary
NSE Surveillance has issued a periodic update (Circular Ref. No. 318/2026) to the surveillance measure covering companies with high promoter and non-promoter encumbrance under Regulation 28(3) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This update is in continuation of NSE/SURV/51189 dated January 31, 2022. No new securities are being added to the framework, three securities are being removed effective May 4, 2026, and four securities remain on the consolidated list subject to a 75% minimum margin requirement.
Key Points
- No new securities have been shortlisted for inclusion under this surveillance measure (Annexure I is Nil)
- Three securities — SAKHTISUG, TFCILTD, and VISASTEEL — are eligible to exit the framework effective May 4, 2026
- Four securities remain on the consolidated list: GAYAHWS, JAYNECOIND, RKEC, and STEELXIND
- Securities under the framework attract a minimum 75% margin in both Equity and Equity Derivatives segments
- The measure applies to all open positions as on May 5, 2026, and all new positions created from May 6, 2026
- This measure operates in conjunction with all other prevailing exchange-imposed measures
- Shortlisting under this measure should not be construed as adverse action against the concerned company
Regulatory Changes
This circular does not introduce new regulatory changes but represents a periodic review of an existing surveillance framework under SEBI SAST Regulation 28(3). The framework was originally established via NSE/SURV/51189 dated January 31, 2022, and continues to be applied on a rolling basis.
Compliance Requirements
- Trading Members must ensure a minimum 75% margin is collected on positions in the four securities listed in Annexure III (GAYAHWS, JAYNECOIND, RKEC, STEELXIND) in both Equity and Equity Derivatives segments
- Margin requirement applies to all open positions as of May 5, 2026, and all new positions from May 6, 2026 onward
- Members may direct further queries to surveillance@nse.co.in
Important Dates
- April 30, 2026: Circular issued
- May 4, 2026: SAKHTISUG, TFCILTD, and VISASTEEL exit the encumbrance surveillance framework
- May 5, 2026: Reference date for open positions subject to enhanced margin
- May 6, 2026: 75% minimum margin requirement becomes effective for remaining securities in Annexure III
Impact Assessment
Securities Exiting the Framework (effective May 4, 2026):
| Symbol | Company | ISIN |
|---|---|---|
| SAKHTISUG | Sakthi Sugars Limited | INE623A01011 |
| TFCILTD | Tourism Finance Corporation of India Limited | INE305A01023 |
| VISASTEEL | Visa Steel Limited | INE286H01012 |
Securities Remaining on Consolidated List (75% margin applies):
| Symbol | Company | ISIN |
|---|---|---|
| GAYAHWS | Gayatri Highways Limited | INE287Z01012 |
| JAYNECOIND | Jayaswal Neco Industries Limited | INE854B01010 |
| RKEC | RKEC Projects Limited | INE786W01010 |
| STEELXIND | STEEL EXCHANGE INDIA LIMITED | INE503B01021 |
The elevated margin requirement (75%) significantly increases the cost of trading and holding positions in the four remaining securities, reducing leverage available to market participants. The exit of three securities from the framework is positive for those stocks, as it removes the margin burden. Overall market impact is limited given the small number of affected securities.
Impact Justification
Routine periodic review of encumbrance surveillance framework. No new securities added; three removed. Remaining four securities face 75% margin requirement. Affects a limited set of stocks in equity and equity derivatives segments.