diff --git a/validator/interface.py b/validator/interface.py
index a3e7e31..d03d7b9 100644
--- a/validator/interface.py
+++ b/validator/interface.py
@@ -124,6 +124,8 @@ def valid_encapsulation(yaml, sub_ifname):
         return False
     if 'inner-dot1q' in encap and not ('dot1ad' in encap or 'dot1q' in encap):
         return False
+    if 'exact-match' in encap and encap['exact-match'] == False and is_l3(yaml, sub_ifname):
+        return False
 
     return True