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<h1>Promoters Must Disclose Encumbered Shares Within Seven Days Under SEBI Regulation 31, Annual Declarations Also Required</h1> Regulation 31 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 mandates that promoters of target companies disclose details of encumbered shares. Such disclosures must be made within seven working days of the creation, invocation, or release of the encumbrance to the relevant stock exchanges and the target company's registered office. Annual declarations are also required, confirming no additional encumbrances beyond those disclosed during the financial year. These requirements exclude encumbrances undertaken in a depository. The annual declaration must be submitted to the stock exchanges and the target company's audit committee within seven working days after the financial year ends.