NSE clarifies on the applicability of Surveillance Measures for Companies with High Encumbrance

The National Stock Exchange of India (NSE) has issued a clarification on the applicability of surveillance measures for companies with high ‘encumbrance’. These extent to those companies following within the ambit of the SEBI (SAST) Regulations, 2021. This Circular was issued on 2nd March, 2023.

The Circular instructs trading members to ensure the following:

  • From 8th March, 2023, on all open positions as on 6th March 2023 and new positions created from 8th March, 2023, the securities in Annexure I must satisfy the criteria for inclusion under Surveillance Measures and shall attract minimum 35% margin in equity and equity derivatives segment.
  • From 3rd March, 2023, the securities in annexure II are eligible to move out from the said framework.

Annexure III provides a consolidated list of securities under the framework.