Description

NSE implements Long-Term ASM with 100% margin requirements and trade-for-trade segment shifts for selected securities effective August 29, 2025.

Summary

NSE has implemented Long-Term Additional Surveillance Measure (ASM) framework for selected securities, imposing 100% margin requirements and potential segment shifts from rolling settlement to trade-for-trade basis effective August 29, 2025.

Key Points

  • Three securities added to Long-Term ASM Framework Stage-I: Lotus Eye Hospital, Trident Techlabs, and Tembo Global Industries
  • 100% margin requirement applicable on all open and new positions from August 29, 2025
  • Securities under criteria VII will shift from EQ series to BE series (trade-for-trade)
  • ASM framework operates in conjunction with other surveillance measures
  • Shortlisting is purely for market surveillance, not adverse action against companies

Regulatory Changes

  • Implementation of Long-Term ASM framework with staged approach
  • Margin requirements increased to 100% for affected securities
  • Segment classification changes for qualifying securities from rolling settlement to trade-for-trade

Compliance Requirements

  • Market participants must comply with 100% margin requirements for affected securities
  • Trading members need to adjust systems for segment changes
  • Compliance with all prevailing surveillance measures remains mandatory

Important Dates

  • August 26, 2025: ASM framework takes effect for listed securities
  • August 28, 2025: Last day before margin requirements apply to existing positions
  • August 29, 2025: 100% margin requirement becomes effective for all positions

Impact Assessment

Market Impact: High - 100% margin requirements will significantly reduce liquidity and trading volumes in affected securities. The trade-for-trade segment shift will further restrict trading flexibility.

Operational Impact: High - Trading members must adjust risk management systems, margin calculations, and client communications. Position management becomes more capital-intensive for affected securities.

Impact Justification

100% margin requirement and segment shifts significantly impact trading operations for affected securities