Description

NSE announces securities under ST-ASM Stage I with enhanced margin requirements of 50% effective September 4, 2025

Summary

The National Stock Exchange has announced the application of Short-Term Additional Surveillance Measure (ST-ASM) framework for select securities. Seven securities have been included under ST-ASM Stage I with enhanced margin requirements of 50% or existing margin (whichever is higher), capped at 100%, effective September 4, 2025. One security (KAUSHALYA) is moving from Stage I to Stage II, while three securities are being excluded from the ASM framework.

Key Points

  • 7 securities added to ST-ASM Stage I: CLEDUCATE, DENTA, DIVINEHIRA, HBLENGINE, JINDALPHOT, JPOLYINVST, and RPPINFRA
  • Applicable margin rate of 50% or existing margin (whichever is higher), capped at 100%
  • KAUSHALYA moving from ST-ASM Stage I to Stage II
  • 3 securities excluded from ASM framework: KIOCL, MIEL, and SABAR
  • Measures apply in conjunction with other prevailing surveillance actions

Regulatory Changes

The enhanced surveillance measures introduce stricter margin requirements for identified securities under the ST-ASM framework. The margin rate of 50% (or existing margin if higher) will apply to all open positions as on September 3, 2025, and new positions created from September 4, 2025. This is part of NSE’s ongoing market surveillance efforts to ensure orderly trading.

Compliance Requirements

  • Trading members must apply enhanced margins of 50% (or existing margin if higher) for securities under ST-ASM Stage I
  • Maximum margin rate is capped at 100%
  • Margins apply to both existing open positions (as on September 3, 2025) and new positions (from September 4, 2025)
  • Members must ensure compliance with ASM framework alongside other surveillance measures

Important Dates

  • September 3, 2025: Assessment date for open positions
  • September 4, 2025: Enhanced margin requirements become effective
  • September 4, 2025: New positions subject to enhanced margins

Impact Assessment

The ST-ASM measures will increase trading costs for the affected securities through higher margin requirements, potentially reducing speculative trading activity. Seven securities face new restrictions while three securities (KIOCL, MIEL, SABAR) are being released from the framework, suggesting improved market conditions for these stocks. The movement of KAUSHALYA to Stage II indicates heightened surveillance concerns. These measures are purely surveillance-based and should not be construed as adverse actions against the companies.

Impact Justification

Enhanced surveillance measures affect trading margins for specific securities but limited to select stocks