Description

NSE implements Short-Term Additional Surveillance Measure on 4 securities with increased margin requirements effective August 26, 2025.

Summary

NSE has implemented Short-Term Additional Surveillance Measure (ST-ASM) Stage I on 4 securities effective August 26, 2025. The affected securities will face increased margin requirements of 50% or existing margin (whichever is higher), capped at 100%. Two securities have been excluded from the ASM framework.

Key Points

  • 4 securities added to ST-ASM Stage I framework
  • Margin rate increased to 50% or existing margin, whichever is higher
  • Maximum margin rate capped at 100%
  • Applicable to all open positions as on August 25, 2025 and new positions from August 26, 2025
  • 2 securities excluded from ASM framework: C2C Advanced Systems Limited and Divine Hira Jewel
  • No securities in Stage II or moving between stages

Regulatory Changes

  • Implementation of Short-Term Additional Surveillance Measure on identified securities
  • Enhanced margin requirements for affected stocks
  • Price band reinstatement provisions for securities exiting the framework

Compliance Requirements

  • Market participants must comply with increased margin requirements for affected securities
  • All NSE members must note the surveillance actions and margin provisions
  • Framework operates in conjunction with other prevailing surveillance measures

Important Dates

  • August 22, 2025: Circular issued
  • August 25, 2025: Cut-off date for existing open positions
  • August 26, 2025: ST-ASM measures become effective

Impact Assessment

Affected Securities (ST-ASM Stage I):

  • Kaushalya Infrastructure Development Corporation Limited (KAUSHALYA)
  • KIOCL Limited (KIOCL)
  • Manglam Infra & Engineering Limited (MIEL)
  • Silgo Retail Limited (SILGO)

Securities Excluded from ASM:

  • C2C Advanced Systems Limited (C2C)
  • Divine Hira Jewel (partial name in document)

The surveillance measure aims to curb excessive speculation and maintain market integrity. Increased margin requirements may reduce trading volumes and volatility in affected securities.

Impact Justification

Affects specific securities with increased margin requirements but limited to 4 stocks