Description

DIGJAM LIMITED moved to Stage II of GSM effective October 15, 2025, subject to trade-for-trade settlement with 5% price band and 50% Additional Surveillance Deposit requirement.

Summary

NSE has moved DIGJAM LIMITED (Symbol: DIGJAMLMTD, ISIN: INE731U01028) to Stage II of the Graded Surveillance Measure (GSM) framework effective October 15, 2025. This escalation follows previous circulars establishing the GSM framework and imposes stricter trading conditions including trade-for-trade settlement, 5% price band, and 50% Additional Surveillance Deposit (ASD) on buyers.

Key Points

  • DIGJAM LIMITED (DIGJAMLMTD) moved to Stage II of GSM effective October 15, 2025
  • Trading will be on Trade-for-Trade basis with no netting off allowed
  • Price band restricted to 5% or lower as applicable
  • Additional Surveillance Deposit (ASD) of 50% of trade value required from buyers
  • Settlement will be done on trade-to-trade basis
  • Members advised to take adequate precautions while trading

Regulatory Changes

The security DIGJAM LIMITED transitions from Stage I to Stage II under the GSM framework. Stage II surveillance actions include:

  • Trade for Trade settlement mechanism (no netting off)
  • Price band limitation of 5% or lower
  • Additional Surveillance Deposit (ASD) of 50% of trade value to be deposited by buyers

GSM Framework Overview:

  • Stage I: 100% margin rate and 5% price band
  • Stage II: Trade-for-trade with 5% price band and 50% ASD by buyers
  • Stage III: Trade-for-trade with 5% price band, weekly trading (Mondays only), and 100% ASD
  • Stage IV: Trade-for-trade with 5% price band, weekly trading (Mondays only), 100% ASD, and no upward movement

Compliance Requirements

For Trading Members:

  • Ensure clients deposit 50% ASD on all buy transactions in DIGJAMLMTD
  • Execute all trades on trade-to-trade basis without netting off
  • Comply with 5% price band restrictions
  • Take adequate precautions when facilitating trades in this security
  • Direct queries to surveillance@nse.co.in

For Investors:

  • Additional capital requirement of 50% of trade value for purchases
  • No intraday trading or netting off allowed
  • Limited price movement due to 5% price band

Important Dates

  • Circular Date: October 14, 2025
  • Effective Date: October 15, 2025 (Stage II surveillance measures applicable)

Impact Assessment

Market Impact:

  • Significantly reduced liquidity for DIGJAM LIMITED due to trade-for-trade requirement
  • Higher capital requirements (50% ASD) will deter speculative trading
  • Price discovery may be affected by 5% price band restriction

Operational Impact:

  • Brokers must implement additional deposit collection mechanisms
  • Settlement processes become more stringent with no netting off
  • Increased compliance and monitoring requirements for trading members

Investor Impact:

  • Higher cost of entry for buyers (50% additional deposit)
  • Reduced trading flexibility and liquidity
  • Potential difficulty in entering or exiting positions
  • Signal of regulatory concern requiring investor caution

The GSM framework is designed to protect investors by imposing stricter surveillance on securities exhibiting abnormal price movements or trading patterns. More information is available in NSE’s FAQs at: https://www.nseindia.com/regulations/graded-surveillance-measure

Impact Justification

Affects one security with enhanced surveillance measures including trade-for-trade settlement and additional deposit requirements, impacting liquidity and trading flexibility for DIGJAM LIMITED.