Description

NSE implements ST-ASM Stage I on AFFORDABLE and TAPIFRUIT with 50% margin requirement effective September 1, 2025, while excluding five securities from ASM framework.

Summary

NSE has applied Short-Term Additional Surveillance Measure (ST-ASM) Stage I to two securities - Affordable Robotic & Automation Limited (AFFORDABLE) and Tapi Fruit Processing Limited (TAPIFRUIT) - effective August 29, 2025. The measure imposes a 50% minimum margin requirement starting September 1, 2025. Additionally, five securities have been excluded from the ASM framework.

Key Points

  • Two securities added to ST-ASM Stage I framework
  • 50% minimum margin requirement or existing margin, whichever is higher (capped at 100%)
  • Five securities excluded from ASM framework entirely
  • Two securities moved from ST-ASM to Enhanced Surveillance Measure (ESM) framework
  • ASM measures work in conjunction with other surveillance measures

Regulatory Changes

  • Introduction of ST-ASM Stage I for AFFORDABLE and TAPIFRUIT securities
  • Margin requirements increased to minimum 50% for affected securities
  • Exclusion of AGARWALTUF, PARTH, RELIABLE, RITEZONE, and SAROJA from ASM framework
  • PARTH and RELIABLE moved from ST-ASM to ESM framework

Compliance Requirements

  • Market participants must maintain 50% margin or existing margin (whichever higher) for ST-ASM Stage I securities
  • Margin requirements apply to all open positions as of August 29, 2025
  • New positions from September 1, 2025 subject to enhanced margin requirements
  • Maximum margin rate capped at 100%

Important Dates

  • August 29, 2025: ST-ASM Stage I becomes applicable
  • September 1, 2025: Enhanced margin requirements take effect for new positions
  • August 29, 2025: Securities excluded from ASM framework

Impact Assessment

Market Impact: Limited impact as only two securities affected by ST-ASM Stage I. However, increased margin requirements may reduce trading volumes and liquidity in AFFORDABLE and TAPIFRUIT shares. The exclusion of five securities from ASM provides relief for those stocks, potentially improving their trading dynamics. The measure is purely surveillance-based and should not be construed as adverse action against the companies.

Impact Justification

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