Description

NSE circular detailing securities being added, moved, or excluded from the Long-Term Additional Surveillance Measure (ASM) framework effective October 29, 2025.

Summary

NSE has issued updates to the Additional Surveillance Measure (ASM) framework effective October 29, 2025. The circular identifies securities being newly added to Long-Term ASM Stage I, securities transitioning between stages, and one security being excluded from the framework. CPS Shapers Limited is newly placed in Stage I, while Megasoft Limited moves from Stage I to Stage II. Moxsh Overseas Educon Limited is removed from LT-ASM and moved to the Enhanced Surveillance Measure (ESM) framework.

Key Points

  • CPS Shapers Limited (CPS, ISIN: INE0QBU01012) newly shortlisted in Long-Term ASM Stage I
  • Megasoft Limited (MEGASOFT, ISIN: INE933B01012) moves from Stage I to Stage II
  • Moxsh Overseas Educon Limited (MOXSH, ISIN: INE0N6D01014) excluded from ASM and moved to ESM framework
  • No securities placed in or moving to Stage IV (Trade-for-Trade basis)
  • No securities moving from higher stages to lower stages
  • Consolidated ASM list includes multiple securities across various stages including AARON, ABINFRA, APOLLO, ARTNIRMAN, ASTRON, ATALREAL, and ATHERENERG in Stage I

Regulatory Changes

The Long-Term ASM framework applies progressive surveillance measures across four stages with increasing restrictions. Securities in Stage IV are shifted from Rolling Settlement (Series: EQ) to Trade-for-Trade (Series: BE) on a T+3 basis as per Criteria VII. The framework aims to alert investors about securities exhibiting abnormal price movements or excessive volatility.

Compliance Requirements

Trading members must:

  • Update their systems to reflect the new ASM classifications effective October 29, 2025
  • Apply appropriate margin requirements and trading restrictions based on ASM stage
  • Ensure clients are aware of enhanced surveillance measures on affected securities
  • Monitor position limits and margin obligations for securities under ASM
  • Comply with Trade-for-Trade settlement requirements for any Stage IV securities

Important Dates

  • Effective Date: October 29, 2025 - New ASM classifications become applicable
  • Circular Issue Date: October 28, 2025

Impact Assessment

The placement of securities under ASM significantly impacts trading dynamics through higher margin requirements, reduced leverage, and increased scrutiny. For CPS, entry into Stage I means immediate application of enhanced surveillance with potential for further restrictions if concerns persist. Megasoft’s progression to Stage II indicates continued surveillance concerns and stricter trading conditions. Moxsh’s transfer to ESM suggests more severe issues requiring the enhanced framework. Trading volumes in affected securities typically decline due to increased costs and restrictions, affecting liquidity. Investors and traders must exercise heightened caution and maintain adequate risk capital when dealing with ASM securities.

Impact Justification

ASM placement significantly impacts trading conditions with increased margin requirements and reduced liquidity. Stage transitions affect multiple securities and trading members must adjust risk management practices.