Description

NSE places two securities under Long-Term ASM Stage-I with 100% margin requirements effective August 28, 2025.

Summary

NSE has implemented Long-Term Additional Surveillance Measure (ASM) on two securities - Karnika Industries Limited and Modern Threads (India) Limited - under Stage-I framework, requiring 100% margin on all positions effective August 28, 2025.

Key Points

  • Two securities placed under Long-Term ASM Framework Stage-I
  • 100% margin applicable on all open and new positions
  • No securities moving between ASM stages or to Stage-IV
  • ASM is a surveillance measure, not adverse action against companies
  • Price bands will be reinstated when securities exit the framework

Regulatory Changes

  • Enhanced margin requirements from normal levels to 100% for specified securities
  • Securities under Stage-IV criteria would move from Rolling Settlement (EQ) to Trade-for-Trade (BE) segment, but none currently qualify

Compliance Requirements

  • Market participants must maintain 100% margin for positions in KARNIKA and MODTHREAD
  • Compliance with ASM framework in conjunction with other surveillance measures
  • Members should refer to NSE FAQs for detailed ASM information

Important Dates

  • August 26, 2025: Last date for existing open positions under normal margin
  • August 28, 2025: Effective date for 100% margin requirement on all positions

Impact Assessment

Securities Affected:

  • Karnika Industries Limited (KARNIKA) - INE0MGA01012
  • Modern Threads (India) Limited (MODTHREAD) - INE794W01014

Trading Impact: Increased margin requirements will likely reduce speculative trading and improve price discovery for these securities. Market participants will need to allocate significantly more capital for positions in these stocks.

Impact Justification

Medium impact as affects specific securities with increased margin requirements but limited scope