Description

NSE updates securities under Long-Term ASM Framework, moving Destiny Logistics to Stage-I and excluding Mcleod Russel India Limited from ASM framework.

Summary

NSE has issued updates to the Additional Surveillance Measure (ASM) Framework effective October 10, 2025. One security, Destiny Logistics & Infra Limited (DESTINY), has been moved from Short-Term ASM (STASM) to Long-Term ASM Framework Stage-I. Additionally, Mcleod Russel India Limited (MCLEODRUSS) has been excluded from the ASM framework as it has been moved to the Enhanced Surveillance Measure (ESM) framework. No securities are being moved between stages within the Long-Term ASM Framework.

Key Points

  • Destiny Logistics & Infra Limited (DESTINY, ISIN: INE0IGO01011) moved from STASM to LTASM Stage-I
  • Mcleod Russel India Limited (MCLEODRUSS, ISIN: INE942G01012) excluded from ASM and moved to ESM framework
  • No securities moved between Long-Term ASM stages (Stage-I to Stage-II, Stage-II to Stage-III, etc.)
  • No new securities added to Long-Term ASM Stage-IV
  • Consolidated ASM list includes securities like AARON, ABINFRA, AKSHARCHEM, APOLLO, ASTRON, and AXISCADES in Stage-I

Regulatory Changes

The circular implements routine surveillance framework adjustments under NSE’s Additional Surveillance Measure (ASM) mechanism. The Long-Term ASM Framework applies enhanced surveillance and trading restrictions on securities exhibiting abnormal price movements or volatility. Securities in Stage-IV of the framework are subject to Trade-for-Trade settlement on a T+3 basis instead of rolling settlement.

Compliance Requirements

  • Trading members must note the changed surveillance status of affected securities
  • For DESTINY: Enhanced surveillance measures applicable under LTASM Stage-I from October 10, 2025
  • For MCLEODRUSS: ESM framework conditions now apply instead of ASM framework
  • Members should update their systems and risk management frameworks accordingly
  • Investors should be aware of higher margin requirements and trading restrictions for securities under ASM

Important Dates

  • Effective Date: October 10, 2025 - All ASM framework changes become applicable

Impact Assessment

Market Impact: Limited to specific securities under surveillance. The movement of DESTINY to LTASM Stage-I will result in enhanced surveillance, potentially including higher margin requirements, price bands, and trading restrictions. This may reduce liquidity and trading volumes in the affected security.

Operational Impact: Trading members need to update their surveillance systems and risk management protocols. Investors holding or trading DESTINY and MCLEODRUSS should be aware of the changed surveillance status and associated restrictions.

Investor Impact: Shareholders of affected securities may experience reduced liquidity, wider bid-ask spreads, and potential difficulty in executing trades. The surveillance measures are designed to protect investors from excessive volatility and potential market manipulation.

Impact Justification

Affects specific securities under surveillance framework with trading restrictions; limited market-wide impact but significant for affected stocks