Description

NSE circular on Short-Term Additional Surveillance Measure framework with margin requirements and security exclusions effective August 13, 2025.

Summary

NSE has issued a circular regarding the Short-Term Additional Surveillance Measure (ST-ASM) framework. While no new securities have been added to ST-ASM Stage I or II, two securities (PLADAINFO and WHITEFORCE) are being excluded from the ASM framework effective August 12, 2025. The circular reinforces existing margin requirements and provides updated consolidated lists.

Key Points

  • No securities currently satisfy criteria for inclusion under ST-ASM Stage I
  • No securities moving between ST-ASM stages
  • Two securities excluded from ASM framework: PLADAINFO (Plada Infotech Services Limited) and WHITEFORCE (Happy Square Outsourcing Services Limited)
  • Applicable margin rate remains 50% or existing margin (whichever higher), capped at 100%
  • ASM framework operates in conjunction with other surveillance measures

Regulatory Changes

  • Removal of two securities from Additional Surveillance Measure framework
  • Continuation of existing ST-ASM margin requirements
  • Framework remains purely market surveillance-based, not adverse action against companies

Compliance Requirements

  • Market participants must apply 50% margin or existing margin (whichever higher) on ST-ASM securities
  • Maximum margin rate capped at 100%
  • Margin applies to all open positions as of August 12, 2025 and new positions from August 13, 2025
  • Members must comply with all prevailing surveillance measures

Important Dates

  • August 12, 2025: Effective date for security exclusions from ASM framework
  • August 13, 2025: Effective date for margin requirements on ST-ASM securities

Impact Assessment

Limited market impact as no new securities are being added to ST-ASM framework. The exclusion of two securities (PLADAINFO and WHITEFORCE) from ASM framework may provide relief to those specific securities by removing additional surveillance measures. Existing securities under ASM framework continue to face elevated margin requirements, maintaining risk management controls on volatile securities.

Impact Justification

Affects margin requirements for securities under surveillance but no new securities added to ST-ASM framework