Description
NSE implements ST-ASM Stage I on 4 securities with 50% margin requirement effective August 28, 2025, while removing 6 securities from ASM framework.
Summary
NSE has implemented Short-Term Additional Surveillance Measure (ST-ASM) Stage I on 4 securities effective August 26, 2025, requiring higher margin rates. Additionally, 6 securities have been removed from the ASM framework entirely.
Key Points
- 4 securities added to ST-ASM Stage I: CPPLUS (Aditya Infotech Limited), FOSECOIND (Foseco India Limited), IZMO (IZMO Limited), LANCORHOL (Lancor Holdings Limited)
- Margin requirement increased to 50% or existing margin, whichever is higher, capped at 100%
- No securities moved between ST-ASM stages
- 6 securities excluded from ASM framework: ASIANHOTNR, CLEDUCATE, ETL, HBLENGINE, KRBL, TI
- ASM framework operates in conjunction with other surveillance measures
Regulatory Changes
Implementation of Short-Term Additional Surveillance Measure Stage I with enhanced margin requirements for identified securities based on market surveillance criteria.
Compliance Requirements
- Market participants must apply 50% margin or existing margin (whichever higher) on affected securities
- Maximum margin rate capped at 100%
- Applicable to all open positions as of August 26, 2025 and new positions from August 28, 2025
- Compliance with all other prevailing surveillance measures remains mandatory
Important Dates
- August 25, 2025: Circular issued
- August 26, 2025: Securities shortlisted for ST-ASM Stage I
- August 28, 2025: Enhanced margin requirements become effective
Impact Assessment
Medium impact on affected securities with increased trading costs due to higher margin requirements. The measure aims to curb excessive speculation while maintaining market stability. Limited to 4 specific securities, reducing overall market-wide impact.
Impact Justification
Affects specific securities with increased margin requirements but limited to 4 stocks entering ST-ASM