Description

NSE applies Short-Term Additional Surveillance Measure to 5 securities with 50% margin requirements effective August 19, 2025.

Summary

NSE has applied Short-Term Additional Surveillance Measure (ST-ASM) Stage I to 5 securities effective August 19, 2025. The measure imposes a minimum margin requirement of 50% or existing margin (whichever is higher), capped at maximum 100%, on all open positions and new positions.

Key Points

  • 5 securities moved to ST-ASM Stage I framework
  • Margin requirement increased to minimum 50% or existing margin, whichever is higher
  • Maximum margin capped at 100%
  • No securities moved to Stage II or between stages
  • One security (ESFL) excluded from ASM framework
  • Surveillance measure is market-based, not adverse action against companies

Regulatory Changes

  • Implementation of ST-ASM Stage I for identified securities
  • Enhanced margin requirements as surveillance measure
  • Framework operates in conjunction with other existing surveillance measures

Compliance Requirements

  • Market participants must comply with enhanced margin requirements
  • Applicable to all open positions as on August 18, 2025
  • Applicable to new positions created from August 19, 2025
  • Members should refer to NSE FAQs for detailed information

Important Dates

  • August 14, 2025: Circular issued
  • August 18, 2025: Cut-off date for existing positions
  • August 19, 2025: Enhanced margin requirements become effective

Impact Assessment

Trading Impact: Increased margin requirements will require higher capital allocation for trading these securities, potentially reducing trading volumes and liquidity. Market Participants: Traders and investors holding positions in affected securities must ensure adequate margin funding. Price Discovery: Enhanced surveillance may lead to more controlled price movements and reduced volatility in these securities.

Impact Justification

Affects trading margins for 5 securities, increasing margin requirements to 50% minimum