Description
NSE implements Short-Term Additional Surveillance Measure (ST-ASM) Stage I on GM Breweries Limited with 50% margin requirement effective October 17, 2025.
Summary
NSE has included GM Breweries Limited (GMBREW) under Short-Term Additional Surveillance Measure (ST-ASM) Stage I framework effective October 17, 2025. The exchange will impose enhanced margin requirements of 50% or existing margin, whichever is higher, capped at maximum 100%. Five securities have been excluded from the ASM framework, with some moving to Long-Term ASM (LT-ASM) or Enhanced Surveillance Measure (ESM) frameworks.
Key Points
- GM Breweries Limited (GMBREW, ISIN: INE075D01018) included in ST-ASM Stage I
- Margin requirement: 50% or existing margin, whichever is higher, capped at 100%
- No securities shortlisted for ST-ASM Stage II
- No securities moving between Stage I and Stage II
- Five securities excluded from ASM framework: Manav Infra Projects, Orient Technologies, Raj Oil Mills, Tata Investment Corporation, and WE WIN LIMITED
- This circular references previous circulars from October 2018, December 2020, April 2022, September 2023, and September 2024
Regulatory Changes
The exchange continues to apply its Additional Surveillance Measure framework based on market surveillance criteria. The ST-ASM framework operates in conjunction with all other prevailing surveillance measures. The shortlisting is purely based on market surveillance and should not be construed as adverse action against the company.
Compliance Requirements
- Members must apply 50% margin or existing margin (whichever is higher, maximum 100%) on GMBREW
- Margin applies to all open positions as on October 16, 2025
- Margin applies to all new positions created from October 17, 2025 onwards
- Market participants should refer to NSE FAQs on Additional Surveillance Measure at https://www.nseindia.com/regulations/additional-surveillance-measure
- Queries can be directed to surveillance@nse.co.in
Important Dates
- Circular Date: October 15, 2025
- Effective Date: October 17, 2025 (for margin requirements)
- Position Reference Date: October 16, 2025 (all open positions as on this date will be subject to new margins)
Impact Assessment
Trading Impact: High - The 50% margin requirement significantly increases capital requirements for trading GMBREW, effectively reducing leverage from typical levels. This will likely reduce trading volumes and liquidity in the affected security.
Market Participants: Traders and investors holding positions in GMBREW must arrange additional margin funds by October 17, 2025, or face potential position squaring by brokers.
Exclusions: Five securities being removed from ASM framework will see relaxation of surveillance measures, though Tata Investment Corporation moves to stricter LT-ASM framework while Manav Infra Projects and WE WIN LIMITED move to ESM framework.
Investor Sentiment: The inclusion under ST-ASM may negatively impact investor sentiment toward GMBREW as it signals exchange concerns about price movements or volatility patterns, though NSE emphasizes this is not an adverse action against the company.
Impact Justification
Medium importance as it affects only one security, but high impact due to significant 50% margin requirement on GMBREW which substantially increases trading costs and restricts leverage for market participants.