Description

NSE announces inclusion of 6 securities under ST-ASM Stage I with 50% margin requirement, and movement of 1 security from Stage II to Stage I effective October 6-7, 2025.

Summary

NSE has updated the Short-Term Additional Surveillance Measure (ST-ASM) framework, placing 6 securities under ST-ASM Stage I and moving 1 security (NIRMAN) from Stage II to Stage I, effective October 6-7, 2025. This surveillance action imposes a minimum 50% margin requirement on affected securities. No securities are being added to Stage II, moved from Stage I to Stage II, or excluded from the ASM framework.

Key Points

  • 6 securities newly included in ST-ASM Stage I: CYBERTECH, GML, RACLGEAR, SAMMAANCAP, SIKKO, THESL
  • NIRMAN (Nirman Agri Genetics Limited) moved from ST-ASM Stage II to Stage I
  • No securities added to Stage II or excluded from ASM framework
  • Margin requirement: 50% or existing margin, whichever is higher (capped at 100%)
  • Shortlisting is purely for market surveillance and not an adverse action against the company
  • ASM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

This circular continues the implementation of the Short-Term Additional Surveillance Measure framework established through previous circulars (NSE/SURV/39265 dated October 27, 2018, and subsequent updates). The framework allows NSE to impose enhanced margins on securities meeting specific surveillance criteria.

Compliance Requirements

For Trading Members:

  • Apply 50% margin or existing margin (whichever is higher, capped at 100%) on all positions in affected securities
  • Margin applies to:
    • All open positions as on October 6, 2025
    • New positions created from October 7, 2025
  • Ensure compliance with margin requirements starting October 7, 2025

Securities Affected:

ST-ASM Stage I (New Inclusions):

  1. CYBERTECH (Cybertech Systems And Software Limited) - INE214A01019
  2. GML (Galaxy Medicare Limited) - INE09A801015
  3. RACLGEAR (RACL Geartech Limited) - INE704B01017
  4. SAMMAANCAP (Sammaan Capital Limited) - INE148I01020
  5. SIKKO (Sikko Industries Limited) - INE112X01017
  6. THESL (Thinking Hats Entertainment Solutions Limited) - INE0SHE01019

Moving from Stage II to Stage I:

  1. NIRMAN (Nirman Agri Genetics Limited) - INE0OK701014

Important Dates

  • October 3, 2025: Circular issued
  • October 6, 2025: Securities shortlisted under ST-ASM; margin applies to open positions
  • October 7, 2025: Enhanced margin requirement becomes effective for new positions

Impact Assessment

Trading Impact:

  • Significantly higher margin requirements (minimum 50%) will increase capital costs for traders in these 7 securities
  • Reduced leverage available for positions in affected stocks
  • Potential decrease in trading volumes and liquidity due to higher margin requirements

Market Participants:

  • Traders with existing positions must meet enhanced margin requirements on October 6, 2025
  • New position-takers from October 7, 2025 face immediate 50% margin requirements
  • Price band adjustments may occur when securities exit the framework

Investor Considerations:

  • Enhanced surveillance indicates unusual price or volume movements in these securities
  • Higher volatility or speculative activity likely triggered the surveillance measure
  • Not an adverse action against the companies, but traders should exercise caution

For additional information, refer to NSE FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure or contact surveillance@nse.co.in

Impact Justification

Imposes significant 50% margin requirements on 7 securities, directly affecting trading costs and liquidity for market participants.