Description

NSE implements Long Term Additional Surveillance Measure for ELGIRUBCO and TAPIFRUIT with 100% margin requirement effective September 3, 2025.

Summary

NSE has implemented Long Term Additional Surveillance Measure (ASM) for two securities - Elgi Rubber Company Limited (ELGIRUBCO) and Tapi Fruit Processing Limited (TAPIFRUIT). The measure includes 100% margin requirement on all positions effective September 3, 2025.

Key Points

  • Two securities moved to Long Term ASM Framework Stage-I
  • 100% margin applicable on all open positions and new positions from September 3, 2025
  • TAPIFRUIT moved from Short Term ASM to Long Term ASM framework
  • No securities moved to Stage-IV (Trade-for-Trade segment)
  • ASM framework works in conjunction with other surveillance measures

Regulatory Changes

  • Implementation of Long Term Additional Surveillance Measure for identified securities
  • Margin requirements increased to 100% for affected securities
  • Securities qualifying under Stage-IV criteria would be shifted from Rolling Settlement (EQ) to Trade-for-Trade (BE) segment

Compliance Requirements

  • Market participants must ensure 100% margin coverage for positions in affected securities
  • Compliance with enhanced surveillance measures alongside existing frameworks
  • Monitor position limits and margin requirements for the specified securities

Important Dates

  • September 2, 2025: Last day for existing margin rates on open positions
  • September 3, 2025: 100% margin requirement becomes effective for all positions
  • September 1, 2025: Securities shortlisted in Long Term ASM Framework Stage-I

Impact Assessment

  • Market Impact: Limited to two specific securities with enhanced margin requirements
  • Trading Impact: Higher margin requirements may reduce speculative activity in affected securities
  • Operational Impact: Brokers need to adjust margin calculations and client communications
  • Investor Impact: Higher capital requirements for trading in ELGIRUBCO and TAPIFRUIT securities

Impact Justification

Affects specific securities with enhanced margin requirements but limited to two companies