# Promoter Encumbrance Events - SEBI SAST Reg 31/32

The real-time promoter pledge / unpledge / invocation event feed: what creation, release and invocation mean, the encumbrance types, how to read the percentages, and how it complements the quarterly pledge snapshot.

Source data: NSE SAST Regulation 31/32 event filings; Mar 2024 onwards. Last updated: 2026-07-02. Interactive tool: https://vigil.tigzig.com/docs/encumbrance

Encumbrance events are real-time filings by promoters whenever they pledge, unpledge, or have their shares invoked (seized) by a lender. Unlike the quarterly [Pledge](/vigil/pledge) snapshot which shows "where things stand," encumbrance events show "what just happened" - every individual transaction as it occurs. They are required under SEBI's Takeover Regulations (SAST Regulations 31/32); each event records who pledged how many shares, to which lender, and whether it was a creation (new pledge), release (unpledge), or invocation (lender selling on default). VIGIL tracks all such events for NSE-listed companies.

[Open the live VIGIL Encumbrance view](https://vigil.tigzig.com/docs/encumbrance) for the per-event feed.

## Three types of events

- **Creation** - the promoter has pledged (or otherwise encumbered) shares as collateral, increasing total encumbrance. The most common event: it happens whenever a promoter takes a new loan against shares, extends a facility, or shifts collateral to a different lender.

- **Release** - the promoter has unpledged shares, typically after repaying or refinancing a loan, or when the collateral requirement decreased. Releases reduce encumbrance; a steady stream of releases is generally positive - the promoter is deleveraging.

- **Invocation** - the lender has exercised its right to sell the pledged shares, usually because the promoter defaulted or failed a margin call. The most serious event type - it indicates actual financial distress. Relatively rare, but with significant implications for the stock price and governance.

## Encumbrance types

- **Pledge** - the most common type (~93% of events): shares given to a bank, NBFC, or broker as loan collateral.

- **Non-Disposal Undertaking (NDU)** - a commitment not to sell or transfer shares without the lender's approval; the shares stay in the promoter's demat account but are effectively locked. Used in loan covenants and strategic transactions.

- **Others** - liens, negative liens, and other restrictions; less common, and sometimes the filing does not specify the exact type.

## How to read the numbers

- **Pre-Event Encumbrance %** - the promoter's personal encumbrance position before this event (e.g. a promoter holding 13% of the company with 4.81% encumbered shows 4.81%).

- **Event % (% in Event)** - the shares in this specific transaction as a percentage of total issued shares (a creation of 200,000 shares in a company with 12.5 crore total shares shows 0.16%).

- **Post-Event Encumbrance %** - the resulting position after this event (higher for a creation, lower for a release). The most useful number - the current state after the transaction.

**Important:** these percentages are per-promoter, not company-wide. If a company has two promoter families with separate encumbrances, each event shows only that promoter's position. The company-wide aggregate is in the quarterly [Pledge](/vigil/pledge) data.

## How encumbrance events relate to pledge data

Think of it as a bank account: the Pledge page shows your **balance** at the end of each quarter; the Encumbrance page shows every **deposit and withdrawal** as it happens.

| Question | Look at |
| --- | --- |
| How much of Company X is pledged right now? | Pledge data (quarterly snapshot) |
| Who pledged to which lender, and when? | Encumbrance events (per-transaction detail) |
| Is the situation getting worse between quarters? | Encumbrance events (real-time trend) |
| Which companies have the highest overall pledge? | Pledge data (sortable, comparable across companies) |

On a company page both sections appear together - the current aggregate position from pledge data, plus the recent transaction history from encumbrance events.

[Open the live VIGIL Encumbrance view on TIGZIG](https://vigil.tigzig.com/docs/encumbrance), or see the companion [Promoter Pledge](/vigil/pledge) page and [all VIGIL data sources](/vigil/data-sources).

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Source: https://www.tigzig.com/vigil/encumbrance