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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Measures related to companies with high promoter and non-promoter encumbrance as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

23-Aug-2023 | 569/2023

National Stock Exchange of India (NSE) has issued a circular regarding measures related to companies with high promoter and non-promoter encumbrance as per Regulation 28(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Key Points of the Circular:

1. Background: The circular is a continuation of NSE's previous circular no NSE/SURV/51189 issued on January 31, 2022, on the same subject.

2. Inclusion of Securities:
a. Securities listed in Annexure I of the circular have met the criteria for inclusion under the measure.
b. These securities will attract a minimum margin requirement of 75% in the Equity and Equity Derivatives segment.
c. The measure will be effective from August 28, 2023, for all open positions as of August 25, 2023, and new positions created from August 28, 2023.

2. Exclusion of Securities:
a. Securities listed in Annexure II of the circular are eligible to exit from the aforementioned framework.
b. The securities will be excluded from the measure starting from August 24, 2023.

3. Consolidated List: A consolidated list of securities covered by this framework is provided in Annexure III of the circular.

4. Conjunction with Other Measures: The new measure will work in conjunction with other prevailing measures imposed by the exchanges over time.
It will be subject to periodic reviews to ensure its effectiveness.

Market participants are advised that the shortlisting of securities under this measure is not intended as an adverse action against the respective company or entity.

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