On 28 June 2022, IND NSD issued operational guidelines for capturing reasons for all types of encumbrances and details of ultimate lenders in the depository system.

• Applicable where shares are pledged in favor of the trustee by the promoters.
• Specified reasons for encumbrance and codes; system will be ready on 1 July 2022.

Background:

• In March 2022, IND SEBI updated on automation of disclosure requirements under SEBI (substantial acquisition of shares and takeovers) regulations, 2011- system driven disclosures.