Description

NSE implements ST-ASM Stage I on 6 securities with 50% margin requirement effective August 20, 2025, while excluding 2 securities from ASM framework.

Summary

NSE has implemented Short-Term Additional Surveillance Measure (ST-ASM) Stage I on 6 securities effective August 19, 2025, requiring increased margin rates. Additionally, 2 securities have been excluded from the ASM framework.

Key Points

  • 6 securities included in ST-ASM Stage I with 50% minimum margin requirement
  • Margin rate capped at maximum 100%
  • 2 securities (SAMBHV and SARDAEN) excluded from ASM framework
  • No securities in ST-ASM Stage II
  • No movements between ASM stages

Regulatory Changes

  • Implementation of ST-ASM Stage I surveillance measure
  • Increased margin requirements for identified securities
  • Enhanced monitoring of securities meeting ST-ASM criteria

Compliance Requirements

  • Market participants must apply 50% margin rate or existing margin (whichever is higher) for affected securities
  • Margin requirements apply to all open positions as of August 19, 2025
  • New positions from August 20, 2025 subject to enhanced margin requirements
  • Maximum margin rate capped at 100%

Important Dates

  • August 18, 2025: Circular issued
  • August 19, 2025: Securities shortlisted for ST-ASM Stage I
  • August 20, 2025: Enhanced margin requirements become effective

Impact Assessment

Affected Securities in ST-ASM Stage I:

  • Arrow Greentech Limited (ARROWGREEN)
  • Bafna Pharmaceuticals Limited (BAFNAPH)
  • DiGiSPICE Technologies Limited (DIGISPICE)
  • Flexituff Ventures International Limited (FLEXITUFF)
  • Newmalayalam Steel Limited (NMSTEEL)
  • ShreeOswal Seeds And Chemicals Limited (OSWALSEEDS)

Securities Excluded from ASM:

  • Sambhv Steel Tubes Limited (SAMBHV)
  • Sarda Energy & Minerals Limited (SARDAEN)

The measure increases trading costs and reduces leverage for the affected securities, potentially impacting liquidity and trading volumes. The surveillance action is purely for market monitoring purposes and should not be construed as adverse action against the companies.

Impact Justification

Affects 6 securities with increased margin requirements but limited scope compared to broader market measures