Description

NSE implements ST-ASM Stage I with 50% margin requirement on five securities effective August 7, 2025, while excluding one security from ASM framework.

Summary

NSE has implemented Short-Term Additional Surveillance Measure (ST-ASM) Stage I on five securities effective August 7, 2025, requiring 50% margin or existing margin (whichever is higher) capped at 100%. One security (Signpost India Limited) has been excluded from the ASM framework.

Key Points

  • Five securities added to ST-ASM Stage I framework
  • Margin requirement increased to 50% or existing margin, whichever is higher
  • Maximum margin rate capped at 100%
  • Applies to all open positions as on August 6, 2025 and new positions from August 7, 2025
  • One security excluded from ASM framework
  • No securities in ST-ASM Stage II currently

Regulatory Changes

  • Implementation of enhanced margin requirements under ST-ASM framework
  • Surveillance measure works in conjunction with other prevailing measures
  • Framework is purely for market surveillance, not adverse action against companies

Compliance Requirements

  • Market participants must maintain higher margin requirements for affected securities
  • Compliance with 50% minimum margin rate effective August 7, 2025
  • Adherence to all other prevailing surveillance measures

Important Dates

  • August 6, 2025: Reference date for existing open positions
  • August 7, 2025: Effective date for new margin requirements and new positions

Impact Assessment

Securities Added to ST-ASM Stage I:

  • Ideal Technoplast Industries Limited (IDEALTECHO)
  • Netweb Technologies India Limited (NETWEB)
  • Saurashtra Cement Limited (SAURASHCEM)
  • Upsurge Seeds Of Agriculture Limited (USASEEDS)
  • Vipul Limited (VIPULLTD)

Securities Excluded from ASM:

  • Signpost India Limited (SIGNPOST)

The increased margin requirements will impact trading liquidity and position sizing for the affected securities, while providing enhanced risk management oversight.

Impact Justification

Affects trading conditions for specific securities with increased margin requirements but limited to five stocks