Description

NSE announces inclusion of three securities under Long-Term ASM Framework Stage-I with 100% margin requirements effective October 23, 2025.

Summary

NSE has issued Circular No. 810/2025 announcing the inclusion of three securities under the Long-Term Additional Surveillance Measure (ASM) Framework Stage-I effective October 20, 2025. These securities will be subject to 100% margin requirements starting October 23, 2025. Securities qualifying under criteria VII (Stage IV) will additionally be shifted from Rolling Settlement (EQ series) to Trade-for-Trade segment (BE series). No securities are being moved to Stage IV or between other stages in this circular.

Key Points

  • Three securities added to Long-Term ASM Framework Stage-I: Ather Energy Limited, Gujarat Raffia Industries Limited, and Mask Investments Limited
  • 100% margin rate applicable on all open positions as on October 21, 2025 and new positions from October 23, 2025
  • No securities are moving to Stage IV or between other ASM stages in this update
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Price bands will be reinstated when securities exit the framework, subject to no other surveillance measures being applicable
  • Shortlisting is purely for market surveillance purposes and not an adverse action against companies

Regulatory Changes

The Long-Term ASM Framework applies enhanced surveillance measures to identified securities based on specific criteria outlined in previous circulars (NSE/SURV/39265, NSE/SURV/45111, NSE/SURV/46557, NSE/SURV/48506, NSE/SURV/52090, NSE/SURV/63362, and NSE/SURV/64066). Securities moved to Stage IV under criteria VII would be shifted from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE), though no such securities are identified in this circular.

Compliance Requirements

  • Market participants must comply with 100% margin requirements for the three listed securities starting October 23, 2025
  • Margins apply to both open positions as on October 21, 2025 and all new positions created from October 23, 2025 onwards
  • Trading members must ensure adequate margin collection from clients trading in these securities
  • Members should refer to FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure for detailed guidance
  • Queries can be directed to surveillance@nse.co.in

Important Dates

  • October 17, 2025: Circular issued
  • October 20, 2025: Securities officially shortlisted under Long-Term ASM Stage-I
  • October 21, 2025: Cut-off date for open positions subject to new margin requirements
  • October 23, 2025: 100% margin requirement becomes effective for all positions

Impact Assessment

Trading Impact: The 100% margin requirement significantly restricts leveraged trading in the three affected securities (ATHERENERG, GUJRAFFIA, MASKINVEST). This effectively eliminates margin trading and requires full upfront payment, likely reducing trading volumes and liquidity in these scrips.

Market Participants: Brokers and traders with existing positions as of October 21, 2025 must arrange for full margin coverage by October 23, 2025. Failure to meet margin requirements could result in position squaring-off.

Investor Implications: Retail and institutional investors will need to deploy full cash for any purchases, eliminating leverage benefits. This may deter speculative trading and reduce volatility in these securities.

Price Impact: The enhanced surveillance measures and margin requirements typically lead to reduced liquidity and potentially higher price volatility during the transition period.

Securities Affected

Long-Term ASM Framework Stage-I (Effective October 20, 2025)

  1. Ather Energy Limited (ATHERENERG) - ISIN: INE0LEZ01016
  2. Gujarat Raffia Industries Limited (GUJRAFFIA) - ISIN: INE610B01024
  3. Mask Investments Limited (MASKINVEST) - ISIN: INE885F01015

Other Stages

  • Stage IV: Nil
  • Stage I to Stage II: Nil
  • Stage II to Stage III: Nil
  • Stage I to Stage IV: Nil

Impact Justification

High margin requirements of 100% significantly impact trading in affected securities and potential shift to Trade-for-Trade segment restricts intraday trading.