Description

NSE adds Chennai Petroleum Corporation Limited, Pasupati Acrylon Limited, and Renol Polychem Limited to Short-Term ASM Stage I framework with enhanced margin requirements effective November 6, 2025.

Summary

NSE has placed three securities under the Short-Term Additional Surveillance Measure (ST-ASM) Stage I framework effective November 4, 2025. The affected securities are Chennai Petroleum Corporation Limited (CHENNPETRO), Pasupati Acrylon Limited (PASUPTAC), and Renol Polychem Limited (RNPL). Enhanced margin requirements of 50% or existing margin (whichever is higher), capped at 100%, will apply to all open positions and new positions from November 6, 2025. Additionally, two securities - Bhageria Industries Limited and Divyadhan Recycling Industries Limited - are being excluded from the ASM framework.

Key Points

  • Three securities added to ST-ASM Stage I: CHENNPETRO (INE178A01016), PASUPTAC (INE818B01023), and RNPL (INE0VZX01015)
  • Enhanced margin rate of 50% or existing margin, whichever is higher, capped at maximum 100%
  • Margin requirements apply to all open positions as on November 4, 2025
  • Margin requirements apply to new positions created from November 6, 2025
  • No securities added to ST-ASM Stage II
  • No securities moving between Stage I and Stage II
  • Two securities excluded from ASM framework: BHAGERIA (Bhageria Industries Limited) and DIVYADHAN (Divyadhan Recycling Industries Limited)
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against companies

Regulatory Changes

The circular implements the Short-Term Additional Surveillance Measure framework as per previous circulars dated October 27, 2018, December 4, 2020, April 28, 2022, September 25, 2023, and September 20, 2024. The ST-ASM framework is part of NSE’s surveillance mechanism to monitor securities exhibiting abnormal price movements or trading patterns.

Compliance Requirements

  • Market participants must comply with enhanced margin requirements of 50% or existing margin (whichever is higher) for the three listed securities
  • Maximum margin cap of 100% applies
  • Margins applicable on all open positions as on November 4, 2025
  • Margins applicable on new positions created from November 6, 2025 onwards
  • Members should monitor ASM framework in conjunction with other surveillance measures imposed by exchanges

Important Dates

  • November 3, 2025: Circular issue date
  • November 4, 2025: Securities inclusion in ST-ASM Stage I becomes effective; margin requirements apply to open positions from this date
  • November 6, 2025: Enhanced margin requirements become applicable to all open positions and new positions created from this date

Impact Assessment

Market Impact: The inclusion of three securities in ST-ASM Stage I will significantly impact trading activity as the enhanced margin requirements (minimum 50%) will reduce leverage available to traders. This may lead to reduced liquidity and trading volumes in these securities.

Operational Impact: Market participants holding positions in CHENNPETRO, PASUPTAC, and RNPL will need to ensure adequate margin coverage by November 6, 2025. Failure to maintain required margins may result in position squaring or penalty charges.

Positive Development: The exclusion of BHAGERIA and DIVYADHAN from the ASM framework indicates improved surveillance parameters for these securities, potentially enhancing trading activity and liquidity.

Investor Consideration: The ST-ASM classification is a surveillance measure and should not be construed as adverse action against the companies. However, investors should exercise caution and understand the reasons for enhanced surveillance before taking positions in these securities.

Impact Justification

High margin requirements (50% or existing, whichever higher, capped at 100%) significantly impact trading in three securities, affecting both existing and new positions