Description

NSE implements Long Term Additional Surveillance Measure with 100% margin requirement and trade-for-trade settlement effective August 8, 2025.

Summary

NSE has implemented Long Term Additional Surveillance Measure (ASM) framework with stringent trading restrictions. The measure includes 100% margin requirements on all positions and potential shift to trade-for-trade settlement for qualifying securities effective August 8, 2025.

Key Points

  • 100% margin requirement applicable on all open positions as of August 7, 2025 and new positions from August 8, 2025
  • Securities meeting Stage IV criteria will be shifted from Rolling Settlement (EQ) to Trade-for-Trade segment (BE)
  • Bohra Industries Limited (BOHRAIND) included in Long-Term ASM Framework Stage-I
  • ASM framework operates in conjunction with other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against companies

Regulatory Changes

  • Implementation of Long Term Additional Surveillance Measure framework
  • Enhanced margin requirements from standard rates to 100%
  • Segment classification changes for qualifying securities from EQ to BE series
  • Strengthened surveillance mechanisms for identified securities

Compliance Requirements

  • Market participants must maintain 100% margin for ASM securities
  • Members must comply with trade-for-trade settlement procedures for Stage IV securities
  • Adherence to all surveillance measures in conjunction with existing frameworks
  • Reference to FAQs available at NSE website for detailed compliance guidance

Important Dates

  • August 5, 2025: Circular issuance date
  • August 7, 2025: Last day for existing positions under current margin structure
  • August 8, 2025: Effective date for 100% margin requirement and trade-for-trade implementation
  • T+3 basis: Timeline for segment shifts (T being circular issuance date)

Impact Assessment

Market Impact: High - 100% margin requirements significantly increase capital requirements for trading ASM securities, potentially reducing liquidity and trading volumes. Trade-for-trade settlement eliminates intraday trading opportunities.

Operational Impact: High - Brokers and traders must adjust risk management systems, margin calculations, and settlement processes. Increased compliance monitoring required.

Investor Impact: High - Retail and institutional investors face higher capital deployment requirements, affecting position sizing and trading strategies for affected securities.

Impact Justification

100% margin requirement and trade-for-trade restrictions significantly impact trading dynamics