Description

NSE announces changes to the Additional Surveillance Measure (ASM) framework, including new securities entering Long-Term ASM Stage I and exclusions from the framework effective October 13, 2025.

Summary

NSE has issued updates to the Additional Surveillance Measure (ASM) framework effective October 13, 2025. Two securities are being added to Long-Term ASM Framework Stage I, with Palred Technologies Limited moving from Short-Term ASM (STASM) to Long-Term ASM (LTASM). Two securities are being excluded from the ASM framework, including Visa Steel Limited which is being moved to the Enhanced Surveillance Measure (ESM) framework instead.

Key Points

  • Two securities added to Long-Term ASM Framework Stage I: Ishan Dyes and Chemicals Limited (ISHANCH) and Palred Technologies Limited (PALREDTEC)
  • Palred Technologies Limited moved from STASM to LTASM framework
  • Ishan Dyes and Chemicals Limited satisfies criteria at BSE
  • Two securities excluded from ASM Framework: Lokesh Machines Limited (LOKESHMACH) and Visa Steel Limited (VISASTEEL)
  • Visa Steel Limited moved from LTASM to ESM framework
  • No securities moving between other ASM stages (Stage I to II, II to III, III to IV, or reverse movements)
  • No new securities in Long-Term ASM Framework Stage IV

Regulatory Changes

The circular updates the list of securities under the Long-Term Additional Surveillance Measure framework. Securities in Stage IV of LTASM are shifted from Rolling Settlement (Series: EQ) to Trade for Trade (Series: BE) on a T+3 basis as per Criteria VII. The framework continues NSE’s surveillance mechanism to monitor securities exhibiting abnormal price movements or unusual trading patterns.

Compliance Requirements

  • Trading members must comply with the revised ASM framework requirements for affected securities
  • Securities in LTASM Stage I are subject to specific surveillance measures and trading restrictions
  • Members must ensure proper client awareness regarding securities under ASM framework
  • Trade for Trade settlement applies to securities reaching Stage IV under the framework

Important Dates

  • Effective Date: October 13, 2025 - All ASM framework changes become applicable

Impact Assessment

The addition of two securities to LTASM Stage I indicates regulatory concerns about price movements or trading patterns in these stocks. Investors and traders in Ishan Dyes and Chemicals Limited and Palred Technologies Limited will face enhanced surveillance measures, which may include higher margins, position limits, or other restrictions. The exclusion of Lokesh Machines Limited from ASM suggests improved compliance, while Visa Steel Limited’s movement to ESM framework indicates continued regulatory scrutiny under a different surveillance mechanism. Overall market impact is limited given the small number of affected securities.

Impact Justification

Affects trading mechanisms for specific securities under surveillance but involves limited number of stocks with moderate market impact