Description

NSE circular announcing securities being placed under Short-Term Additional Surveillance Measure (ST-ASM) framework, effective October 27, 2025.

Summary

NSE has issued circular NSE/SURV/70950 (Ref: 821/2025) announcing the applicability of Short-Term Additional Surveillance Measure (ST-ASM) framework effective October 27, 2025. Three new securities have been added to ST-ASM Stage I (Bhageria Industries Limited, Divyadhan Recycling Industries Limited, and Electro Force (India) Limited). The consolidated list now contains 30 securities under ST-ASM Stage I framework. No securities are currently in Stage II, and no securities are being excluded from the framework.

Key Points

  • Three securities added to ST-ASM Stage I: BHAGERIA (INE354C01027), DIVYADHAN (INE0QYI01019), EFORCE (INE0Q1W01012)
  • No securities in ST-ASM Stage II
  • No securities moving between stages
  • No securities being excluded from ASM framework
  • Total of 30 securities now under ST-ASM Stage I surveillance
  • Consolidated list includes securities from various sectors with enhanced monitoring

Regulatory Changes

The ST-ASM framework applies enhanced surveillance measures to securities exhibiting abnormal price movements or volatility. Stage I measures typically include:

  • Reduction in price bands (typically 5% or lower)
  • 100% upfront margin requirement from clients
  • Delivery-based settlement only (no intraday trading)
  • Additional disclosure requirements for trading members

Securities can progress to Stage II if unusual activity continues, which involves more stringent restrictions.

Compliance Requirements

  • Trading members must collect 100% upfront margins from clients for transactions in listed securities
  • Only delivery-based trading permitted (no intraday squaring off)
  • Members must ensure compliance with reduced price band limits
  • Enhanced reporting and monitoring obligations for transactions in these securities
  • Clients must have adequate funds/securities before order placement

Important Dates

  • Circular Date: October 24, 2025
  • Effective Date: October 27, 2025 (measures come into force)

Impact Assessment

Market Impact: Medium - affects liquidity and trading activity in 30 securities, with three new additions to the surveillance framework.

Trading Impact: Traders and investors in these securities will face:

  • Reduced intraday trading opportunities (delivery-only settlement)
  • Higher capital requirements (100% upfront margin)
  • Limited price movement within narrow bands
  • Reduced liquidity due to stricter trading conditions

Investor Impact: The surveillance measures aim to protect investors from excessive volatility and potential manipulation, though they may reduce trading flexibility and liquidity in affected securities.

Impact Justification

Affects trading in 30 securities under ST-ASM framework with enhanced surveillance measures including stricter price bands and settlement requirements for Stage I securities