Description

NSE circular announcing securities subject to Short-Term Additional Surveillance Measure (ST-ASM) framework effective October 31, 2025, including one new addition and two exclusions.

Summary

NSE has issued Circular No. 840/2025 (Ref: NSE/SURV/71034) regarding the applicability of Short-Term Additional Surveillance Measure (ST-ASM) effective October 31, 2025. One security, Utssav CZ Gold Jewels Limited (UTSSAV), has been added to ST-ASM Stage I. Two securities, Banco Products (I) Limited (BANCOINDIA) and V2 Retail Limited (V2RETAIL), are being excluded from the ASM framework. The consolidated list now contains 29 securities under Stage I surveillance.

Key Points

  • One security added to Short-Term ASM Framework Stage I: Utssav CZ Gold Jewels Limited (UTSSAV, ISIN: INE06IJ01010)
  • No securities in Short-Term ASM Framework Stage II
  • No securities moving between Stage I and Stage II
  • Two securities excluded from ASM Framework: BANCOINDIA (ISIN: INE213C01025) and V2RETAIL (ISIN: INE945H01013)
  • Total of 29 securities now under ASM Framework Stage I
  • All changes effective from October 31, 2025

Regulatory Changes

The Short-Term ASM framework continues to apply enhanced surveillance measures to securities exhibiting abnormal price movements or unusual trading patterns. Securities under ST-ASM are subject to:

  • Trade-to-trade settlement
  • 100% margin requirements
  • No intraday trading allowed
  • Enhanced disclosure requirements
  • Periodic review for movement between stages or exclusion

Compliance Requirements

  • Trading members must ensure compliance with ST-ASM framework provisions for affected securities
  • Enhanced margin requirements of 100% must be collected from clients
  • Only delivery-based trading permitted in these securities
  • Members must inform clients about securities under ST-ASM surveillance
  • Risk management systems must be updated to reflect the changes

Important Dates

  • Circular Date: October 30, 2025
  • Effective Date: October 31, 2025 - ST-ASM changes become applicable

Impact Assessment

Market Impact: Medium - Affects 29 securities with enhanced surveillance measures. The addition of UTSSAV to Stage I indicates increased regulatory scrutiny due to potential price volatility or unusual trading activity. The exclusion of BANCOINDIA and V2RETAIL suggests these securities have stabilized and no longer require enhanced surveillance.

Trading Impact: Investors and traders in affected securities face restricted trading conditions including 100% upfront margin, trade-to-trade settlement, and no intraday positions. This typically reduces liquidity and trading volumes in these securities.

Investor Impact: Existing and potential investors in the 29 listed securities should be aware of the trading restrictions and exercise increased caution. The ST-ASM designation signals regulatory concerns about price movements or trading patterns in these securities.

Impact Justification

Affects trading conditions for 29 securities under ASM framework with one new addition (UTSSAV) to Stage I and two exclusions (BANCOINDIA, V2RETAIL). Medium impact as it applies enhanced surveillance measures to specific securities.