Description

NSE implements Long Term ASM with 100% margin requirement and shifts BGR Energy Systems to Trade-for-Trade segment effective August 26, 2025.

Summary

NSE has implemented Long Term Additional Surveillance Measure (ASM) affecting Grand Continent Hotels Limited (GCHOTELS) and BGR Energy Systems Limited (BGRENERGY). The measure includes 100% margin requirements and segment shifts effective August 26, 2025.

Key Points

  • Grand Continent Hotels Limited added to Long-Term ASM Framework Stage-I
  • BGR Energy Systems Limited moved from Stage-I to Stage-IV under Long-Term ASM Framework
  • 100% margin requirement applicable on all positions
  • BGR Energy Systems to be shifted from Rolling Settlement (EQ) to Trade-for-Trade (BE) segment
  • ASM framework operates in conjunction with other prevailing surveillance measures

Regulatory Changes

  • Implementation of Long-Term Additional Surveillance Measure criteria
  • Margin requirements increased to 100% for affected securities
  • Segment classification change for securities meeting Criteria VII (Stage IV)

Compliance Requirements

  • Market participants must maintain 100% margin for affected securities
  • All open positions as of August 25, 2025 subject to new margin requirements
  • New positions from August 26, 2025 onwards subject to 100% margin
  • BGR Energy Systems trading restricted to Trade-for-Trade segment

Important Dates

  • August 26, 2025: Effective date for 100% margin requirement
  • August 26, 2025: BGR Energy Systems shifts to Trade-for-Trade segment (T+3 basis from circular date August 21, 2025)
  • August 25, 2025: Cut-off date for existing positions subject to new margin requirements

Impact Assessment

High Impact: The 100% margin requirement significantly increases capital requirements for trading these securities. BGR Energy Systems faces additional restriction with segment shift to Trade-for-Trade, limiting liquidity and trading flexibility. These measures are purely surveillance-based and not adverse actions against the companies, but will substantially impact trading activity and investor participation in these securities.

Impact Justification

Significant trading restrictions with 100% margin and segment shift affecting securities