Description

NSE implements Short-Term Additional Surveillance Measure (ST-ASM) Stage I for 4 securities with increased margin requirements of 50% or existing margin, whichever is higher, effective October 29, 2025.

Summary

NSE has implemented Short-Term Additional Surveillance Measure (ST-ASM) Stage I for four securities effective October 29, 2025. The measure increases margin requirements to 50% or existing margin (whichever is higher), capped at 100%, for all open positions and new positions. Additionally, five securities are being excluded from the ASM framework.

Key Points

  • 4 securities added to ST-ASM Stage I: Advance Agrolife Limited (ADVANCE), EPack Prefab Technologies Limited (EPACKPEB), Jain Resource Recycling Limited (JAINREC), and Rite Zone Chemcon India Limited (RITEZONE)
  • Margin requirement increased to minimum 50% or existing margin, whichever is higher, capped at 100%
  • No securities in ST-ASM Stage II
  • No securities moving between stages
  • 5 securities excluded from ASM framework: De Neers Tools Limited (DENEERS), GM Breweries Limited (GMBREW), Pentagon Rubber Limited (PENTAGON), Rockingdeals Circular Economy Limited (ROCKINGDCE), and Samay Project Services Limited (SAMAY)
  • GM Breweries Limited moved from ST-ASM to LT-ASM 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 previously established through circulars NSE/SURV/39265 (October 27, 2018), NSE/SURV/46557 (December 04, 2020), NSE/SURV/52144 (April 28, 2022), NSE/SURV/58558 (September 25, 2023), and NSE/SURV/64066 (September 20, 2024).

Compliance Requirements

  • Market participants must maintain increased margins of 50% or existing margin (whichever is higher) on affected securities
  • Margin requirements apply to all open positions as on October 28, 2025
  • Margin requirements apply to all new positions created from October 29, 2025
  • Maximum margin rate capped at 100%
  • Members should refer to NSE FAQs on Additional Surveillance Measure at https://www.nseindia.com/regulations/additional-surveillance-measure

Important Dates

  • October 27, 2025: Circular issued
  • October 28, 2025: Cut-off date for existing open positions subject to new margin requirements
  • October 29, 2025: Effective date for margin requirements on all positions (existing and new)

Impact Assessment

Trading Impact: High - The 50% minimum margin requirement significantly increases capital requirements for trading these securities, potentially reducing liquidity and trading volumes.

Market Participants: Traders and investors holding positions in the four affected securities (ADVANCE, EPACKPEB, JAINREC, RITEZONE) will face substantially higher margin obligations, requiring additional capital or position reduction.

Securities Included in ST-ASM Stage I:

  1. Advance Agrolife Limited (ADVANCE) - ISIN: INE1B0W01010
  2. EPack Prefab Technologies Limited (EPACKPEB) - ISIN: INE0MLS01022
  3. Jain Resource Recycling Limited (JAINREC) - ISIN: INE0YD401026
  4. Rite Zone Chemcon India Limited (RITEZONE) - ISIN: INE0MRA01019

Securities Excluded from ASM Framework:

  1. De Neers Tools Limited (DENEERS) - ISIN: INE0JWV01011
  2. GM Breweries Limited (GMBREW) - ISIN: INE075D01018 (moved to LT-ASM)
  3. Pentagon Rubber Limited (PENTAGON) - ISIN: INE0ORS01017
  4. Rockingdeals Circular Economy Limited (ROCKINGDCE) - ISIN: INE0PTR01012
  5. Samay Project Services Limited (SAMAY) - ISIN: INE124101010

For queries, members may contact surveillance@nse.co.in.

Impact Justification

Significant increase in margin requirements to 50% minimum for affected securities, directly impacting trading costs and liquidity. Affects both new and existing positions.