Description

NSE updates ASM framework with new securities in Stage I and Stage IV, including movement of SIKKO from ST-ASM to LT-ASM and AXISCADES to Trade-for-Trade segment.

Summary

NSE has issued updates to the Additional Surveillance Measure (ASM) Framework effective October 07, 2025. Two securities have been added to Long-Term ASM Stage I, with SIKKO Industries Limited moving from ST-ASM to LT-ASM framework. AXISCADES Technologies Limited is being moved directly from Stage I to Stage IV, requiring it to shift from Rolling Settlement (EQ) to Trade-for-Trade (BE) on a T+3 basis within 3 days of circular issuance.

Key Points

  • Two securities added to Long-Term ASM Framework Stage I: SIKKO Industries Limited (INE112X01017) and Sumeet Industries Limited (INE235C01036)
  • SIKKO Industries Limited moved from Short-Term ASM to Long-Term ASM framework
  • AXISCADES Technologies Limited (INE555B01013) moved from Stage I to Stage IV under Criteria VII
  • AXISCADES will shift from Rolling Settlement (Series: EQ) to Trade-for-Trade (Series: BE) on T+3 basis
  • No securities excluded from ASM framework in this update
  • No movements between other stage transitions (Stage I to II, II to III, etc.)
  • Consolidated ASM list includes multiple securities across different stages

Regulatory Changes

The Long-Term ASM Framework applies enhanced surveillance on securities based on various criteria including price movements, volume patterns, and corporate actions. Stage IV placement under Criteria VII triggers the most stringent measure - mandatory Trade-for-Trade settlement, eliminating intraday trading and requiring full upfront delivery.

Compliance Requirements

  • Trading members must ensure compliance with Trade-for-Trade settlement requirements for AXISCADES from T+3 day
  • Position limits and margin requirements as applicable under ASM framework must be observed
  • Enhanced surveillance and monitoring of securities under ASM framework
  • Clients trading in ASM securities must be informed of applicable restrictions

Important Dates

  • Effective Date: October 07, 2025 - ASM framework changes take effect
  • T+3 Implementation: AXISCADES shift to Trade-for-Trade segment (3 trading days from circular date)
  • Circular Date: October 06, 2025

Impact Assessment

High Impact on AXISCADES: The direct movement to Stage IV with Trade-for-Trade requirement significantly restricts liquidity, eliminates intraday trading, and requires 100% upfront margins from both buyers and sellers. This typically results in reduced trading volumes and increased price volatility.

Medium Impact on SIKKO and SUMEETINDS: Stage I placement involves enhanced surveillance but allows normal trading, though it signals regulatory concern and may deter some investors.

Market Implications: ASM framework is designed to protect investors from excessive speculation and unusual price movements. Securities under ASM typically experience reduced institutional participation and higher bid-ask spreads due to trading restrictions.

Impact Justification

Significant trading restrictions with AXISCADES moving to Trade-for-Trade (T+3) segment under Stage IV, and SIKKO transitioning from short-term to long-term ASM framework, affecting liquidity and trading patterns.