Description

NSE places Force Motors under Long-Term ASM framework with 100% margin requirement effective July 30, 2025.

Summary

NSE has placed Force Motors Limited (FORCEMOT) under the Long-Term Additional Surveillance Measure (ASM) Framework Stage I effective July 28, 2025. This surveillance action requires 100% margin on all positions from July 30, 2025, as part of NSE’s market surveillance framework to monitor securities that meet specific criteria for enhanced oversight.

Key Points

  • Force Motors Limited (FORCEMOT, ISIN: INE451A01017) added to Long-Term ASM Stage I
  • 100% margin requirement applicable on all open positions as of July 29, 2025 and new positions from July 30, 2025
  • No securities moved between ASM stages or to Trade-for-Trade segment in this circular
  • ASM framework operates in conjunction with other prevailing surveillance measures
  • Action is purely surveillance-based and not adverse to the company

Regulatory Changes

The Long-Term ASM framework imposes enhanced margin requirements on securities that satisfy specific surveillance criteria. Securities under ASM Stage IV would be shifted from Rolling Settlement (EQ series) to Trade-for-Trade segment (BE series), though no such movements occurred in this circular.

Compliance Requirements

  • Market participants must ensure 100% margin coverage for FORCEMOT positions
  • Margin requirement applies to both existing open positions as of July 29, 2025 and all new positions created from July 30, 2025
  • Members must comply with enhanced surveillance measures while the stock remains under ASM framework

Important Dates

  • July 28, 2025: Force Motors shortlisted under Long-Term ASM Stage I
  • July 29, 2025: Last day for existing positions under normal margin requirements
  • July 30, 2025: 100% margin requirement becomes effective for all FORCEMOT positions

Impact Assessment

The surveillance measure specifically targets Force Motors, requiring significantly higher margin (100% vs normal rates) which may reduce trading volumes and liquidity in the stock. The measure aims to curb excessive speculation while allowing normal trading to continue. Market participants with existing positions will need additional margin funding, potentially leading to position adjustments. The action signals regulatory attention on the stock’s trading patterns without affecting the company’s fundamental operations.

Impact Justification

Affects single stock with significant margin increase but limited market-wide impact