Description

NSE implements enhanced surveillance measures with 50% margin requirements for five securities including Baweja Studios, Datamatics, IEX, Rite Zone Chemcon, and VR Infraspace.

Summary

NSE has implemented Short-Term Additional Surveillance Measure (ST-ASM) Stage I on five securities effective July 29, 2025. The measure requires a minimum 50% margin or existing margin (whichever is higher) capped at 100% for all positions. Two securities are being excluded from the ASM framework. This is a market surveillance action and not an adverse action against the companies.

Key Points

  • Five securities shortlisted under ST-ASM Stage I: Baweja Studios Limited, Datamatics Global Services Limited, Indian Energy Exchange Limited, Rite Zone Chemcon India Limited, and VR Infraspace Limited
  • Enhanced margin requirement of 50% or existing margin (whichever is higher), capped at 100%
  • No securities currently in Stage II or moving between stages
  • Two securities excluded from ASM framework: Crayons Advertising Limited and Magellanic Cloud
  • Surveillance measure is purely for market monitoring, not punitive action against companies

Regulatory Changes

Implementation of Short-Term Additional Surveillance Measure (ST-ASM) framework with staged approach for enhanced market surveillance and risk management.

Compliance Requirements

  • Market participants must maintain applicable margin rates of 50% or existing margin (whichever is higher) for affected securities
  • Margin requirements apply to all open positions as on July 28, 2025 and new positions from July 29, 2025
  • Compliance with all other prevailing surveillance measures remains mandatory
  • Price bands will be reinstated when securities exit the framework, subject to no other surveillance measures

Important Dates

  • July 28, 2025: Cut-off date for existing positions
  • July 29, 2025: Effective date for enhanced margin requirements on new and existing positions

Impact Assessment

Market Impact: Medium - affects liquidity and trading costs for five specific securities, requiring higher capital commitment from traders and investors.

Operational Impact: Medium - traders need to adjust position sizing and margin planning for affected securities, potentially reducing speculative activity in these stocks.

Compliance Impact: Low to Medium - straightforward margin requirement changes that fit within existing surveillance framework without requiring new operational procedures.

Impact Justification

Affects trading margins for five specific securities, impacting traders and investors in these stocks with higher capital requirements