Description

NSE adds Vineet Laboratories to Long-Term ASM Stage-I and moves Stallion India Fluorochemicals from Stage-I to Stage-II, with 100% margin requirement effective October 08, 2025.

Summary

NSE has updated the Additional Surveillance Measure (ASM) framework, adding Vineet Laboratories Limited to Long-Term ASM Stage-I and moving Stallion India Fluorochemicals Limited from Stage-I to Stage-II. A 100% margin rate will apply to all open positions and new positions in these securities from October 08, 2025. No securities were added to or moved to Stage-IV (which would trigger shift to Trade-for-Trade segment).

Key Points

  • Vineet Laboratories Limited (VINEETLAB, ISIN: INE505Y01010) shortlisted in Long-Term ASM Framework Stage-I effective October 06, 2025
  • Stallion India Fluorochemicals Limited (STALLION, ISIN: INE0RYC01010) moved from Stage-I to Stage-II effective October 06, 2025
  • No securities in Stage-IV or moving to Stage-IV in this update
  • 100% margin requirement applies to both existing and new positions
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the companies

Regulatory Changes

Mandatory 100% margin on affected securities under Long-Term ASM framework. Securities qualifying under criteria VII (Stage-IV) would be shifted from Rolling Settlement (Series: EQ) to Trade-for-Trade segment (Series: BE), but no securities met this criteria in the current update.

Compliance Requirements

  • Trading members must ensure 100% margin collection on all open positions as on October 07, 2025
  • 100% margin required on all new positions created from October 08, 2025 onwards
  • Members must monitor ASM framework updates and adjust risk management accordingly
  • Price bands will be reinstated to pre-ASM levels when securities exit the framework, subject to no other surveillance measures being applicable

Important Dates

  • October 03, 2025: Circular issued (Ref: 768/2025)
  • October 06, 2025: Securities shortlisted/moved in ASM framework become effective
  • October 07, 2025: Last day before margin changes apply
  • October 08, 2025: 100% margin requirement effective on all positions

Impact Assessment

Market Impact: High - The 100% margin requirement significantly increases capital requirements for trading these securities, likely reducing liquidity and trading volumes. This measure aims to curb excessive speculation and volatility.

Operational Impact: High - Brokers must adjust margin collection systems and communicate requirements to clients. Traders holding positions must arrange for additional margin or square off positions.

Affected Securities: 2 securities (1 newly added to Stage-I, 1 moved from Stage-I to Stage-II)

Investor Impact: Investors and traders in VINEETLAB and STALLION face substantially higher margin requirements, making leveraged trading unfeasible. Cash market trading remains possible but with full upfront payment required.

Impact Justification

100% margin requirement significantly restricts trading and liquidity for affected securities, with potential shift to trade-for-trade segment for Stage-IV securities