Description

NSE circular announcing Long Term Additional Surveillance Measure with 100% margin requirement effective August 20, 2025.

Summary

NSE has issued a circular regarding the applicability of Additional Surveillance Measure (ASM) framework. While no securities are currently listed in any stage of the Long Term ASM framework as of August 18, 2025, the circular establishes the framework structure and surveillance actions that will apply when securities meet the criteria.

Key Points

  • Long Term Additional Surveillance Measure framework established with multiple stages
  • 100% margin requirement applicable on all positions when securities are included
  • Securities meeting Stage IV criteria will be shifted from Rolling Settlement (EQ) to Trade-for-Trade (BE) segment
  • Framework works in conjunction with other prevailing surveillance measures
  • Price band reinstatement provisions when securities move out of framework
  • Shortlisting is purely market surveillance based, not adverse action against companies

Regulatory Changes

  • Implementation of Long Term ASM framework with staged approach
  • Margin requirements set at 100% for included securities
  • Segment shifting mechanism from Rolling Settlement to Trade-for-Trade for Stage IV securities
  • Price band adjustment protocols established

Compliance Requirements

  • Market participants must comply with 100% margin requirements when securities are included
  • Members must adhere to Trade-for-Trade segment requirements for Stage IV securities
  • Compliance with all other prevailing surveillance measures remains mandatory

Important Dates

  • August 18, 2025: Framework stages become effective (currently no securities listed)
  • August 20, 2025: Margin requirements and segment shifts would become effective (when applicable)

Impact Assessment

Currently minimal impact as no securities are listed under any stage of the framework. However, when securities are included, there will be significant impact through 100% margin requirements and potential segment shifts to Trade-for-Trade, which could affect liquidity and trading patterns for affected securities.

Impact Justification

Framework announcement with no specific securities listed currently, but establishes important surveillance measures