Description

NSE circular announcing securities entering, moving between, or exiting ASM framework stages effective October 30, 2025, including one security moving from STASM to LTASM Stage-I and two securities advancing from Stage-I to Stage-II.

Summary

NSE has issued updates to the Additional Surveillance Measure (ASM) framework effective October 30, 2025. One security (Electro Force India Limited) has been moved from Short-Term ASM to Long-Term ASM Stage-I. Two securities (Cartrade Tech Limited and Drone Destination Limited) are being escalated from Stage-I to Stage-II within the Long-Term ASM framework. No securities are being excluded from the ASM framework or moving to Stage-IV at this time.

Key Points

  • Electro Force (India) Limited (EFORCE) moved from STASM to LTASM Stage-I effective October 30, 2025
  • Cartrade Tech Limited (CARTRADE) escalated from LTASM Stage-I to Stage-II
  • Drone Destination Limited (DRONE) escalated from LTASM Stage-I to Stage-II
  • No securities moved to Stage-IV (Trade for Trade basis)
  • No securities excluded from ASM framework this period
  • No downward stage movements (Stage-IV to Stage-III, Stage-III to Stage-II, or Stage-II to Stage-I)
  • Consolidated ASM list includes multiple securities across different stages

Regulatory Changes

The ASM framework continues to operate under existing guidelines with securities being monitored and moved between stages based on surveillance criteria. Stage-IV securities would be shifted from Rolling Settlement (Series: EQ) to Trade for Trade (Series: BE) on a T+3 basis, though no securities are moving to Stage-IV in this circular.

Compliance Requirements

  • Trading members must note the stage changes for affected securities
  • Enhanced margin requirements apply based on ASM stage classification
  • Investors trading in ASM securities face increased surveillance margins
  • Trade for Trade settlement applies to Stage-IV securities (none in this update)
  • Members must ensure compliance with ASM framework requirements for client trading

Important Dates

  • Effective Date: October 30, 2025 - All stage changes become applicable
  • Circular Issue Date: October 29, 2025

Impact Assessment

Market Impact: Three securities experience increased surveillance measures, with EFORCE now under long-term monitoring and CARTRADE and DRONE facing stricter Stage-II requirements including higher margins.

Trading Impact: Investors in these three securities will face higher margin requirements and increased surveillance. Stage-II classification typically involves 100% margin requirement compared to lower stages.

Investor Impact: Existing positions in EFORCE, CARTRADE, and DRONE will require additional margin funding. New investors should be aware of enhanced surveillance indicating higher risk profiles for these securities.

Operational Impact: Brokers and trading members must update their surveillance systems and margin calculations for the affected securities by October 30, 2025.

Impact Justification

Affects three securities with stage changes in ASM framework, impacting trading conditions with increased surveillance margins and restrictions for investors in these stocks