Description

NSE circular regarding Additional Surveillance Measure framework with no securities currently listed in any ASM stage.

Summary

NSE issued circular 619/2025 regarding the Additional Surveillance Measure (ASM) framework. The circular provides an update on securities qualifying for Long Term ASM but currently shows no securities listed in any of the ASM stages.

Key Points

  • All ASM framework stages currently show ‘Nil’ entries for securities
  • ASM framework operates in conjunction with other surveillance measures
  • Securities under ASM would face 100% margin requirements
  • Stage IV securities would be shifted from Rolling Settlement to Trade-for-Trade segment
  • ASM shortlisting is purely for market surveillance and not adverse action against companies

Regulatory Changes

  • Long Term ASM framework provisions remain in effect
  • Securities meeting Stage IV criteria would be shifted from Series EQ to Series BE (Trade-for-Trade)
  • 100% margin requirement would apply to both existing and new positions

Compliance Requirements

  • Market participants must note ASM framework operates alongside other surveillance measures
  • Members should refer to NSE FAQs on Additional Surveillance Measure for detailed information
  • Queries can be directed to surveillance@nse.co.in

Important Dates

  • Circular Date: August 12, 2025
  • Effective Date: August 13, 2025 (for any securities that would be listed)
  • Margin Implementation: August 18, 2025 (would apply if securities were listed)
  • Open Position Coverage: August 14, 2025 (baseline date for margin calculation)

Impact Assessment

Currently minimal impact as no securities are listed in any ASM stage. The circular serves as a framework update and reminder to market participants about ASM provisions. If securities were to be included in future, affected stocks would face increased margin requirements and potential trading restrictions.

Impact Justification

No securities are currently affected as all ASM stages show 'Nil' entries