Description

NSE implements Long Term Additional Surveillance Measure with 100% margin requirement and trade-for-trade segment shifts effective August 19, 2025.

Summary

NSE has implemented Long Term Additional Surveillance Measure (Long Term - ASM) framework affecting securities that meet specific criteria. The measure includes increased margin requirements and potential segment shifts for enhanced market surveillance.

Key Points

  • 100% margin requirement applicable on all positions effective August 19, 2025
  • Jayaswal Neco Industries Limited (JAYNECOIND) included in Long-Term ASM Framework Stage-I
  • Securities under criteria VII will shift from Rolling Settlement (EQ) to Trade-for-Trade (BE) segment
  • ASM framework operates in conjunction with other existing surveillance measures
  • Shortlisting is purely for market surveillance, not adverse action against companies

Regulatory Changes

  • Implementation of Long Term Additional Surveillance Measure framework
  • Margin rate increased to 100% for securities under ASM
  • Segment classification changes for qualifying securities from EQ to BE series
  • Enhanced surveillance monitoring for identified securities

Compliance Requirements

  • Market participants must maintain 100% margin on ASM securities from August 19, 2025
  • Compliance with new position requirements for both existing and new positions
  • Adherence to Trade-for-Trade segment rules for securities shifted from Rolling Settlement
  • Members must note the applicable surveillance actions and framework provisions

Important Dates

  • August 13, 2025: Circular issuance date
  • August 14, 2025: Effective date for ASM framework implementation
  • August 18, 2025: Last day for existing positions under current margin requirements
  • August 19, 2025: 100% margin requirement and segment shifts become effective

Impact Assessment

  • Trading Impact: Significantly increased capital requirements due to 100% margin
  • Liquidity Impact: Potential reduction in trading volumes for affected securities
  • Operational Impact: Segment shifts require operational adjustments for trade processing
  • Market Impact: Enhanced surveillance may affect price discovery and volatility
  • Investor Impact: Higher capital commitment required for positions in ASM securities

Impact Justification

High margin requirements (100%) and segment shifts significantly impact trading operations and liquidity