Description

NSE announces securities moving into Long-Term ASM framework with 100% margin requirements effective October 20, 2025. Three securities enter Stage-I and one security moves from Stage-I to Stage-II.

Summary

NSE has issued surveillance measures under the Additional Surveillance Measure (ASM) framework effective October 16-20, 2025. Three securities have been included in Long-Term ASM Stage-I, requiring 100% margin on all positions. One security is moving from Stage-I to Stage-II. Tata Investment Corporation Limited has been moved from Short-Term ASM to Long-Term ASM framework. The margin requirements will apply to open positions as on October 17, 2025 and new positions from October 20, 2025 onwards.

Key Points

  • Three securities shortlisted for Long-Term ASM Framework Stage-I: Cambridge Technology Enterprises Limited (CTE), Tata Investment Corporation Limited (TATAINVEST), and Xelpmoc Design And Tech Limited (XELPMOC)
  • TATAINVEST moved from Short-Term ASM to Long-Term ASM framework
  • Moxsh Overseas Educon Limited (MOXSH) moving from Stage-I to Stage-II
  • 100% margin requirement applicable on all open and new positions
  • No securities shortlisted for Stage-IV or moving to Stage-III
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the companies

Regulatory Changes

The circular implements the Long-Term Additional Surveillance Measure framework with specific margin requirements. Securities meeting ASM criteria will be subject to enhanced margin obligations. Those qualifying under Criteria VII (Scrips shifted to Stage IV) would be shifted from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE), though no securities currently fall under this category in this circular.

Compliance Requirements

  • Market participants must ensure 100% margin is maintained on all open positions in affected securities as on October 17, 2025
  • 100% margin requirement applies to all new positions created from October 20, 2025 onwards
  • Members must comply with the ASM framework provisions as outlined in reference circulars NSE/SURV/39265, NSE/SURV/45111, NSE/SURV/46557, NSE/SURV/48506, NSE/SURV/52090, NSE/SURV/63362, and NSE/SURV/64066
  • Trading members should review their client positions in affected securities and ensure adequate margin collection

Important Dates

  • October 15, 2025: Circular issue date
  • October 16, 2025: Securities shortlisted in Long-Term ASM framework become effective
  • October 17, 2025: Reference date for open positions subject to 100% margin
  • October 20, 2025: 100% margin requirement becomes applicable on all open positions and new positions

Impact Assessment

Market Impact: High - The 100% margin requirement significantly increases capital requirements for traders holding positions in the four affected securities. This will likely reduce trading volumes and liquidity in these stocks.

Operational Impact: Trading members must adjust their risk management systems to enforce 100% margin collection for CTE, TATAINVEST, XELPMOC, and MOXSH. Clients with existing positions need to be notified and additional margins collected by October 20, 2025.

Investor Impact: Investors holding positions in these securities face substantially higher margin obligations, potentially forcing position closures or requiring additional capital infusion. The movement of TATAINVEST from ST-ASM to LT-ASM indicates persistent surveillance concerns.

Liquidity Concerns: The enhanced surveillance measures typically result in reduced market participation and wider bid-ask spreads, making it more difficult for investors to enter or exit positions efficiently.

Impact Justification

High impact due to 100% margin requirement on affected securities and movement of stocks within ASM framework, directly affecting trading positions and liquidity for Cambridge Technology Enterprises, Tata Investment Corporation, Xelpmoc Design And Tech, and Moxsh Overseas Educon.