Description

NSE announces inclusion of 3 securities under Long-Term ASM Framework Stage-I with 100% margin requirement effective September 5, 2025.

Summary

NSE has announced the inclusion of three securities under the Long-Term Additional Surveillance Measure (ASM) Framework Stage-I, effective September 3, 2025. The affected securities - Balaji Phosphates Limited, Gabriel India Limited, and Zenith Exports Limited - will be subject to 100% margin requirements starting September 5, 2025, on all open positions as of September 4, 2025, and new positions created thereafter.

Key Points

  • Three securities added to Long-Term ASM Framework Stage-I: Balaji Phosphates Limited (BALAJIPHOS), Gabriel India Limited (GABRIEL), and Zenith Exports Limited (ZENITHEXPO)
  • 100% margin requirement applicable on all positions from September 5, 2025
  • No securities moved to Stage-IV or between other stages in this update
  • ASM framework operates in conjunction with other surveillance measures
  • Shortlisting is for market surveillance purposes only and not an adverse action against companies

Regulatory Changes

The circular implements the Additional Surveillance Measure framework as per previous NSE circulars dating from October 2018 to September 2024. Securities meeting the ASM criteria are subject to enhanced margin requirements of 100% to address concerns related to market surveillance. Securities qualifying under criteria VII would be shifted from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE), though no securities qualified for this action in the current circular.

Compliance Requirements

Trading members must:

  • Apply 100% margin on all open positions in the affected securities as of September 4, 2025
  • Ensure 100% margin collection for all new positions created from September 5, 2025 onwards
  • Monitor and comply with ASM framework requirements alongside all other prevailing surveillance measures
  • Note that the ASM framework is purely for market surveillance and should not be interpreted as adverse action

Important Dates

  • September 2, 2025: Circular issued
  • September 3, 2025: Securities included in Long-Term ASM Framework Stage-I
  • September 4, 2025: Cut-off date for existing open positions
  • September 5, 2025: 100% margin requirement becomes effective

Impact Assessment

The inclusion of these three securities in the ASM framework will primarily impact traders and investors holding positions in Balaji Phosphates Limited, Gabriel India Limited, and Zenith Exports Limited. The 100% margin requirement significantly increases the capital requirement for trading these securities, potentially reducing speculative trading and volatility. While this measure enhances market integrity and investor protection, it may also reduce liquidity in the affected securities. The framework remains dynamic, with securities potentially moving between stages based on ongoing surveillance criteria.

Impact Justification

Affects trading of 3 securities with 100% margin requirement, significant for investors holding these positions but limited market-wide impact