Description

NSE implements Long Term Additional Surveillance Measures on select securities with 100% margin requirement and trade-for-trade segment shifts effective August 25, 2025.

Summary

NSE has announced the implementation of Long Term Additional Surveillance Measures (ASM) on select securities effective August 25, 2025. The measure includes a 100% margin requirement on all positions and potential shifts from Rolling Settlement to Trade-for-Trade segment for qualifying securities.

Key Points

  • Long Term ASM framework applied to shortlisted securities
  • 100% margin rate applicable on all open and new positions
  • Securities meeting Stage IV criteria shifted to Trade-for-Trade segment
  • Two securities (SATIPOLY and STALLION) moving from Stage I to Stage II
  • ASM framework operates in conjunction with other surveillance measures

Regulatory Changes

  • Implementation of 100% margin requirement under Long Term ASM
  • Shift of qualifying securities from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE)
  • Enhanced surveillance measures based on predefined criteria

Compliance Requirements

  • Market participants must comply with 100% margin requirements
  • Trading members need to adjust systems for Trade-for-Trade segment operations
  • Adherence to all prevailing surveillance measures alongside ASM framework

Important Dates

  • August 22, 2025: Reference date for existing open positions
  • August 25, 2025: Effective date for 100% margin requirement and segment shifts
  • T+3 basis: Timeline for Trade-for-Trade segment shifts (T being circular issuance date)

Impact Assessment

  • High impact on liquidity for affected securities due to 100% margin requirement
  • Operational changes required for securities moving to Trade-for-Trade segment
  • Enhanced monitoring and compliance costs for market participants
  • Limited immediate impact as most categories show ‘Nil’ entries, with only two securities (SATIPOLY and STALLION) moving between stages

Impact Justification

Significant margin increase to 100% and segment shifts affecting trading patterns