Description

NSE implements Long-Term ASM with 100% margin requirements and trade-for-trade segment shifts for selected securities effective August 12, 2025.

Summary

NSE has implemented Long-Term Additional Surveillance Measure (ASM) for two securities effective August 12, 2025. BGR Energy Systems Limited and MIRC Electronics Limited will be subject to 100% margin requirements on all positions and shifted to Trade-for-Trade segment if they meet Stage IV criteria.

Key Points

  • Two securities shortlisted under Long-Term ASM Framework Stage I: BGRENERGY and MIRCELECTR
  • 100% margin requirement applicable on all open positions as of August 11, 2025 and new positions from August 12, 2025
  • Securities qualifying under Criteria VII (Stage IV) will shift from Rolling Settlement (EQ) to Trade-for-Trade (BE) segment
  • 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 ASM with enhanced margin requirements
  • Potential segment migration from Rolling Settlement to Trade-for-Trade for Stage IV securities
  • Enhanced surveillance monitoring for listed securities

Compliance Requirements

  • Market participants must maintain 100% margins for positions in affected securities
  • Compliance with Trade-for-Trade settlement mechanism if securities are shifted to BE segment
  • Adherence to all existing surveillance measures alongside ASM framework

Important Dates

  • August 7, 2025: Circular issuance date
  • August 8, 2025: Effective date for ASM Stage I inclusion
  • August 11, 2025: Last day for existing margin rates on open positions
  • August 12, 2025: 100% margin requirement becomes effective
  • T+3 basis: Timeline for segment shift implementation (if applicable)

Impact Assessment

  • Trading Impact: Significantly increased margin requirements will raise trading costs and may reduce speculative activity
  • Liquidity Impact: 100% margin requirement likely to reduce trading volumes and market liquidity for affected securities
  • Market Participants: Higher capital requirements for maintaining positions in BGRENERGY and MIRCELECTR
  • Operational Impact: Potential segment migration will change settlement mechanisms and trading procedures

Impact Justification

100% margin requirement and segment shift significantly impacts trading costs and liquidity for affected securities