Description

NSE implements Long Term ASM with 100% margin requirements and trade-for-trade segment shifts for qualifying securities effective August 14, 2025.

Summary

NSE has implemented Long Term Additional Surveillance Measure (ASM) for securities that have satisfied specific criteria. The measure includes 100% margin requirements on all positions and potential shifts from Rolling Settlement to Trade-for-Trade segment for certain securities.

Key Points

  • Long Term ASM framework applied to qualifying securities
  • 100% margin requirement on all open and new positions
  • Securities under criteria VII will shift from EQ series to BE series (Trade-for-Trade)
  • Framework operates in conjunction with other surveillance measures
  • Shortlisting is purely for market surveillance, not adverse action against companies

Regulatory Changes

  • Implementation of 100% margin rates for ASM securities
  • Segment classification changes from Rolling Settlement (EQ) to Trade-for-Trade (BE) for Stage IV securities
  • Enhanced surveillance framework building on previous circulars from 2018-2024

Compliance Requirements

  • Market participants must maintain 100% margin on ASM securities
  • Compliance with Trade-for-Trade settlement for reclassified securities
  • Adherence to all prevailing surveillance measures
  • Monitor ASM FAQ updates on NSE website

Important Dates

  • August 12, 2025: Securities shortlisted for Long Term ASM Stage I
  • August 13, 2025: Last day for existing positions under current margin rates
  • August 14, 2025: 100% margin requirement effective date
  • August 14, 2025: Trade-for-Trade segment shift effective date (T+3 basis)

Impact Assessment

Stage I Securities Added:

  • Kandarp Digi Smart BPO Limited (KANDARP)
  • Sati Poly Plast Limited (SATIPOLY)

Trading Impact:

  • Significantly increased margin requirements (100%) will reduce leverage and may impact trading volumes
  • Trade-for-Trade classification reduces liquidity by eliminating intraday trading
  • Higher capital requirements for position holders
  • Potential reduction in speculative activity in these securities

Market Participants:

  • Brokers need to adjust margin collection systems
  • Traders must ensure adequate capital for 100% margin requirements
  • Institutional investors may face higher funding costs for these positions

Impact Justification

High impact due to 100% margin requirements and segment shifts affecting trading liquidity and costs