Description

NSE implements Short-Term Additional Surveillance Measure (ST-ASM) Stage I for three securities with 50% margin requirement effective October 16, 2025, and excludes three securities from ASM framework.

Summary

NSE has imposed Short-Term Additional Surveillance Measure (ST-ASM) Stage I on three securities effective October 15, 2025. The surveillance action requires a margin rate of 50% or existing margin (whichever is higher, capped at 100%) on all open positions and new positions from October 16, 2025. Three securities are being excluded from the ASM framework: Delaplex Limited, Trust Fintech Limited (moved to ESM framework), and United Heat Transfer Limited.

Key Points

  • Three securities included under ST-ASM Stage I: Niraj Cement Structurals Limited (NIRAJ), Siddhi Cotspin Limited (SIDDHICOTS), and V Marc India Limited (VMARCIND)
  • Margin requirement: 50% or existing margin, whichever is higher, subject to maximum of 100%
  • No securities listed under ST-ASM Stage II
  • No securities moving between stages
  • Three securities excluded from ASM framework effective October 15, 2025
  • Trust Fintech Limited moved from ST-ASM to Enhanced Surveillance Measure (ESM) framework
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the company

Regulatory Changes

This circular is issued further to Exchange Circulars NSE/SURV/39265 (October 27, 2018), NSE/SURV/46557 (December 04, 2020), NSE/SURV/52144 (April 28, 2022), NSE/SURV/58558 (September 25, 2023), and NSE/SURV/64066 (September 20, 2024) regarding Additional Surveillance Measure framework.

The ST-ASM framework introduces heightened margin requirements for securities meeting specific surveillance criteria to mitigate potential risks from abnormal price movements or trading patterns.

Compliance Requirements

  • Trading members must collect applicable margin of 50% or existing margin (whichever is higher, maximum 100%) on all open positions as on October 15, 2025
  • Same margin requirements apply to new positions created from October 16, 2025 onwards
  • Members must ensure compliance with margin collection for the three securities under ST-ASM Stage I
  • All market participants must note that ASM framework applies in addition to other surveillance measures
  • For queries, members may contact NSE at surveillance@nse.co.in

Important Dates

  • October 14, 2025: Circular issued
  • October 15, 2025: Effective date for securities inclusion/exclusion from ASM framework
  • October 16, 2025: Enhanced margin requirements (50% or existing margin, whichever is higher) applicable on:
    • All open positions as on October 15, 2025
    • All new positions created from this date onwards

Impact Assessment

Securities Under ST-ASM Stage I:

  • Niraj Cement Structurals Limited (INE368I01016)
  • Siddhi Cotspin Limited (INE0SVO01019)
  • V Marc India Limited (INE0GXK01018)

Securities Excluded from ASM:

  • Delaplex Limited (INE0SK801018)
  • Trust Fintech Limited (INE0SWN01019) - moved to ESM framework
  • United Heat Transfer Limited (INE0SMR01011)

Market Impact: The 50% margin requirement significantly increases capital requirements for traders holding positions in the three affected securities. This may lead to reduced trading volumes, lower liquidity, and potential selling pressure as traders may need to reduce positions to meet margin obligations. Conversely, the three securities excluded from ASM framework will experience relaxation of surveillance restrictions, potentially improving liquidity.

Operational Impact: Brokers and clearing members must update their risk management systems to implement the enhanced margin requirements and ensure adequate margin collection from clients. The elevated margins serve as a deterrent to speculative trading and aim to stabilize price movements in these securities.

Impact Justification

Significant margin increase to 50% for affected securities impacts trading liquidity and capital requirements for market participants holding positions in these stocks