Description
NSE announces inclusion of 5 securities under ST-ASM Stage I with 50% margin requirements effective October 20, 2025, and exclusion of 5 securities from ASM framework.
Summary
NSE has issued a surveillance circular updating the Short-Term Additional Surveillance Measure (ST-ASM) framework. Five securities have been shortlisted for inclusion under ST-ASM Stage I effective October 17, 2025, with enhanced margin requirements of 50% or existing margin (whichever is higher, capped at 100%) applicable from October 20, 2025. Additionally, five securities are being excluded from the ASM framework. This circular references previous NSE circulars from 2018, 2020, 2022, 2023, and 2024 establishing the ASM framework.
Key Points
- 5 securities added to ST-ASM Stage I: Rockingdeals Circular Economy Limited, Samay Project Services Limited, Sandur Manganese & Iron Ores Limited, Tarapur Transformers Limited, and Vels Film International Limited
- Margin requirement set at 50% or existing margin, whichever is higher, with maximum cap of 100%
- Nil securities in ST-ASM Stage II or moving between stages
- 5 securities excluded from ASM framework: Indbank Merchant Banking Services Limited, Indraprastha Medical Corporation Limited, Orbit Exports Limited, Shree Pushkar Chemicals & Fertilisers Limited, and Tara Chand InfraLogistic Solutions Limited
- ASM framework operates in conjunction with all other prevailing surveillance measures
- Inclusion under ASM is purely for market surveillance and not an adverse action against the company
Regulatory Changes
The circular implements surveillance actions under the ST-ASM framework as per previous circulars dating back to October 2018. The framework continues NSE’s surveillance mechanism to monitor securities exhibiting unusual price movements or trading patterns. The shortlisting is based on predefined criteria established in earlier circulars NSE/SURV/39265, NSE/SURV/46557, NSE/SURV/52144, NSE/SURV/58558, and NSE/SURV/64066.
Compliance Requirements
- Trading members must apply applicable margin rate of 50% or existing margin (whichever is higher) on all open positions as on October 17, 2025
- Same margin requirements apply to new positions created from October 20, 2025 onwards
- Maximum margin rate is capped at 100%
- Members should refer to FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure for detailed information
- Queries may be directed to surveillance@nse.co.in
Important Dates
- October 16, 2025: Circular issue date
- October 17, 2025: Effective date for securities inclusion/exclusion from ST-ASM framework
- October 20, 2025: Margin requirements become applicable on new positions and existing open positions
Impact Assessment
Securities Under ST-ASM Stage I: The 50% minimum margin requirement will significantly impact trading liquidity and investor participation in the five affected securities (ROCKINGDCE, SAMAY, SANDUMA, TARAPUR, VELS). Higher margin requirements typically reduce speculative activity and trading volumes, potentially stabilizing volatile price movements.
Securities Excluded from ASM: The five excluded securities (INDBANK, INDRAMEDCO, ORBTEXP, SHREEPUSHK, TARACHAND) will experience relief from surveillance restrictions, potentially improving liquidity and reducing trading costs for market participants.
Market Participants: Brokers and traders must adjust their margin calculations and risk management systems to accommodate the new requirements. Those holding positions in affected securities need to ensure adequate margin coverage by October 20, 2025 to avoid forced liquidation.
Operational Impact: The surveillance measure serves as a cooling-off mechanism for securities with unusual market behavior, balancing investor protection with market efficiency.
Impact Justification
Affects 10 securities with surveillance measure changes. 5 new inclusions face 50% margin requirements impacting trading liquidity, while 5 exclusions gain relief from restrictions.