Description

NSE circular regarding securities under Long Term Additional Surveillance Measure with 100% margin requirements effective August 13, 2025.

Summary

NSE has issued a circular regarding the applicability of Additional Surveillance Measure (ASM) framework. While no specific securities are being added to or moved within the Long Term ASM framework at this time (all annexures show ‘Nil’), the circular establishes the surveillance measures that would apply when securities qualify for inclusion.

Key Points

  • All annexures in the circular show ‘Nil’ entries - no securities are currently being affected
  • Long Term ASM framework includes multiple stages (I, II, III, IV) with progressive surveillance measures
  • Securities meeting Stage IV criteria will be shifted from Rolling Settlement (EQ) to Trade-for-Trade segment (BE)
  • ASM framework operates in conjunction with other prevailing surveillance measures
  • Price bands will be reinstated when securities move out of the framework

Regulatory Changes

  • 100% margin requirement applicable on all open positions and new positions for securities under Long Term ASM
  • Securities qualifying under Stage IV criteria shift from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE)

Compliance Requirements

  • Market participants must comply with 100% margin requirements for ASM securities
  • Members must note the surveillance framework operates alongside other existing measures
  • Compliance with Trade-for-Trade segment requirements for Stage IV securities

Important Dates

  • August 13, 2025: Effective date for 100% margin requirements on ASM securities
  • August 12, 2025: Cut-off date for existing open positions subject to new margin requirements
  • August 11, 2025: Reference date for ASM framework stages (though no securities affected)

Impact Assessment

Currently minimal market impact as no securities are being added to or moved within the ASM framework. However, the circular establishes the regulatory framework and procedures that would apply when securities do qualify for ASM measures. The 100% margin requirement and potential shift to Trade-for-Trade segment represent significant trading restrictions when applied.

Impact Justification

Framework application with no specific securities affected this time, but establishes important surveillance measures