Description

NSE implements Short-Term Additional Surveillance Measure (ST-ASM) Stage I on ATC Energies System Limited with 50% margin requirement effective October 23, 2025.

Summary

The National Stock Exchange has placed ATC Energies System Limited (ATCENERGY) under Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective October 21, 2025. The surveillance action requires a margin of 50% or existing margin (whichever is higher, capped at 100%) on all positions from October 23, 2025. Additionally, four securities (BLUESTONE, HYBRIDFIN, KEYFINSERV, TARAPUR) are being excluded from the ASM framework.

Key Points

  • ATC Energies System Limited (ATCENERGY, ISIN: INE0V0Q01019) added to ST-ASM Stage I
  • Enhanced margin of 50% or existing margin (whichever is higher) will apply, capped at 100%
  • No securities shortlisted in ST-ASM Stage II
  • No securities moving between Stage I and Stage II
  • Four securities excluded from ASM framework: BlueStone Jewellery and Lifestyle Limited, Hybrid Financial Services Limited, Keynote Financial Services Limited, and Tarapur Transformers Limited
  • HYBRIDFIN and TARAPUR moved from ST-ASM to ESM (Enhanced Surveillance Measure) 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 continues the implementation of the Additional Surveillance Measure (ASM) framework established through previous circulars dating back to October 27, 2018. The framework is designed to enhance market surveillance and protect investor interests by imposing higher margin requirements on securities exhibiting concerning trading patterns.

Compliance Requirements

  • Trading members must apply the enhanced margin rate of 50% or existing margin (whichever is higher, maximum 100%) on ATCENERGY
  • Enhanced margins apply to:
    • All open positions as on October 21, 2025
    • New positions created from October 23, 2025 onwards
  • Members should monitor the consolidated ASM list for all securities under surveillance
  • Market participants must comply with all other prevailing surveillance measures in addition to ASM requirements

Important Dates

  • October 20, 2025: Circular issued (Ref. No. 814/2025)
  • October 21, 2025: Effective date for ST-ASM Stage I inclusion and exclusions from ASM framework
  • October 23, 2025: Enhanced margin requirements become applicable on ATCENERGY

Impact Assessment

Market Impact: Limited market-wide impact as only one security enters ST-ASM Stage I. However, traders and investors in ATCENERGY will face significantly higher margin requirements, potentially reducing trading volumes and liquidity in this security.

Operational Impact: Brokers and trading members need to adjust their margin collection systems to implement the 50% minimum margin requirement for ATCENERGY. Clients with existing positions will need to provide additional margin or face potential position squaring.

Investor Impact: Investors holding positions in ATCENERGY will need to maintain higher margins, which increases the cost of carry for leveraged positions. This may trigger position closures if investors cannot meet the enhanced margin requirements.

Positive Developments: The exclusion of four securities from the ASM framework (including BLUESTONE, KEYFINSERV) indicates improved market behavior for these stocks, resulting in normalized trading conditions and lower margin requirements for market participants.

Impact Justification

Affects one security with enhanced margin requirements under surveillance framework. Medium impact for investors holding or trading ATCENERGY.