NSE Surveillance Measure: High Promoter and Non-Promoter Encumbrance under SEBI SAST Regulation 28(3) - May 2026 Update

Description

NSE updates the list of securities under the high promoter/non-promoter encumbrance surveillance measure, adding BLKASHYAP with a 75% minimum margin requirement effective May 11, 2026. The consolidated list now covers five securities.

Summary

NSE has issued an update 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. B. L. Kashyap and Sons Limited (BLKASHYAP) has been newly shortlisted under this framework and will attract a minimum 75% margin in the Equity and Equity Derivatives segments effective May 11, 2026. No securities are being removed from the framework in this update. The consolidated list now comprises five securities.

Key Points

• BLKASHYAP (B. L. Kashyap and Sons Limited, ISIN: INE350H01032) is newly included; it has moved from the ‘High Promoter Encumbrance’ category to the ‘High Promoter/Non-Promoter Encumbrance’ category.
• Minimum 75% margin will be applicable in the Equity and Equity Derivatives segments for BLKASHYAP on all open positions as on May 08, 2026 and new positions created from May 11, 2026.
• No securities are being excluded (Annexure II lists Nil).
• The measure operates in conjunction with all other prevailing exchange-level measures and is subject to periodic review.
• Inclusion in this measure should not be construed as an adverse action against the concerned company.

Regulatory Changes

This circular is issued in continuation of NSE circular NSE/SURV/51189 dated January 31, 2022. The current update modifies the composition of the encumbrance surveillance framework by reclassifying BLKASHYAP from the high promoter encumbrance sub-category to the combined high promoter and non-promoter encumbrance sub-category, triggering the 75% margin requirement under Reg. 28(3) of SEBI (SAST) Regulations, 2011.

Compliance Requirements

• Trading Members must ensure minimum 75% margin is collected from clients for positions in BLKASHYAP in the Equity and Equity Derivatives segments.
• Margin requirement applies to all open positions as on May 08, 2026 and all new positions from May 11, 2026 onwards.
• Members may direct queries to surveillance@nse.co.in.

Important Dates

• May 06, 2026: Circular issued.
• May 07, 2026: BLKASHYAP inclusion effective (Annexure I heading references May 07, 2026).
• May 08, 2026: Reference date for all open positions subject to the 75% margin.
• May 11, 2026: 75% minimum margin requirement becomes effective for open and new positions.

Impact Assessment

The measure directly impacts traders and investors holding or intending to take positions in the five securities on the consolidated list, particularly BLKASHYAP which is newly subject to the enhanced margin. The 75% margin requirement significantly increases the cost of carrying leveraged positions in these securities in both the cash equity and derivatives segments, likely reducing liquidity and increasing bid-ask spreads. The remaining four securities (GAYAHWS, JAYNECOIND, RKEC, STEELXIND) continue under the existing framework with no change. Broader market impact is limited given the small number of affected scrips.

Consolidated List of Securities Under the Framework

Impact Justification

Affects a small set of five specific securities with elevated margin requirements; does not represent a broad market or regulatory policy change but has direct trading cost implications for participants holding these stocks.