Description

NSE implements Short-Term Additional Surveillance Measure (ST-ASM) Stage I on 5 securities with 50% margin requirement, while removing 6 securities from ASM framework effective November 06, 2025.

Summary

NSE has issued a surveillance circular implementing Short-Term Additional Surveillance Measure (ST-ASM) Stage I on five securities effective November 06, 2025. The affected securities will be subject to enhanced margin requirements of 50% or existing margin (whichever is higher), capped at 100%, applicable from October 07, 2025 on all open positions and new positions. Additionally, six securities are being excluded from the ASM framework. This measure is part of NSE’s ongoing market surveillance activities and should not be construed as adverse action against the concerned companies.

Key Points

  • 5 securities newly included under ST-ASM Stage I framework
  • Margin requirement increased to 50% or existing margin, whichever is higher, with maximum cap of 100%
  • Enhanced margins apply to positions as on October 06, 2025 and new positions from October 07, 2025
  • No securities shortlisted for ST-ASM Stage II
  • No securities moving between ST-ASM stages
  • 6 securities excluded from ASM framework
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Circular references previous ASM circulars dated October 27, 2018, December 04, 2020, April 28, 2022, September 25, 2023, and September 20, 2024

Securities Included in ST-ASM Stage I (Effective November 06, 2025)

  1. Dredging Corporation of India Limited (DREDGECORP) - ISIN: INE506A01018
  2. Fineotex Chemical Limited (FCL) - ISIN: INE045J01034
  3. Lakshya Powertech Limited (LAKSHYA) - ISIN: INE0VZS01015
  4. TD Power Systems Limited (TDPOWERSYS) - ISIN: INE419M01027
  5. Thangamayil Jewellery Limited (THANGAMAYL) - ISIN: INE085J01014

Securities Excluded from ASM Framework (Effective November 06, 2025)

  1. Advance Agrolife Limited (ADVANCE) - ISIN: INE1B0W01010
  2. IFB Agro Industries Limited (IFBAGRO) - ISIN: INE076C01018
  3. Jain Resource Recycling Limited (JAINREC) - ISIN: INE0YD401026
  4. Megastar Foods Limited (MEGASTAR) - ISIN: INE00EM01016
  5. Rite Zone Chemcon India Limited (RITEZONE) - ISIN: INE0MRA01019
  6. Shankara Building Products Limited (SHANKARA) - ISIN: INE274V01019

Regulatory Changes

The Short-Term Additional Surveillance Measure (ST-ASM) framework applies enhanced margin requirements to securities that satisfy specific surveillance criteria. The applicable surveillance actions for ST-ASM Stage I include:

  • Margin rate set at 50% or existing margin, whichever is higher
  • Maximum margin capped at 100%
  • Applies to all open positions as on October 06, 2025
  • Applies to all new positions created from October 07, 2025

The ASM framework is designed to work alongside other surveillance measures imposed by the exchange and is subject to periodic review based on market conditions and security-specific factors.

Compliance Requirements

  • Trading Members: Must ensure adequate margin collection from clients for the affected securities
  • Margin Collection: Enhanced margins must be collected starting October 07, 2025
  • Position Monitoring: Both existing positions (as on October 06, 2025) and new positions require the enhanced margin
  • Risk Management: Members should update their risk management systems to reflect the new margin requirements
  • Client Communication: Members should inform clients about the enhanced margin requirements for affected securities

Important Dates

  • November 04, 2025: Circular issued
  • October 06, 2025: Reference date for existing open positions
  • October 07, 2025: Enhanced margin requirements become applicable
  • November 06, 2025: Effective date for inclusion/exclusion of securities under ST-ASM framework

Impact Assessment

Market Impact:

  • Trading activity in the 5 securities under ST-ASM Stage I may decrease due to higher margin requirements
  • Increased cost of carry for positions in affected securities
  • Potential reduction in speculative trading activity
  • Positive impact on 6 securities excluded from ASM framework, as they return to normal margin requirements

Operational Impact:

  • Brokers need to adjust margin collection systems for affected securities
  • Enhanced monitoring required for compliance with new margin levels
  • Client communication and education necessary regarding changed requirements

Risk Management:

  • Higher margins reduce systemic risk by limiting leverage in securities under surveillance
  • Enhanced surveillance serves as an early warning mechanism for potential market irregularities
  • The measure is precautionary and does not reflect adversely on the fundamental quality of the companies

Investor Considerations:

  • Traders and investors in affected securities will need higher capital allocation
  • Position sizes may need to be adjusted based on available margin
  • Removal of 6 securities from ASM provides trading relief and normalized margin requirements

For additional information on the Additional Surveillance Measure framework, market participants can refer to NSE’s FAQ at https://www.nseindia.com/regulations/additional-surveillance-measure or contact NSE at surveillance@nse.co.in

Impact Justification

Medium importance as it affects trading margins for 5 specific securities under enhanced surveillance, requiring higher margins (50% or existing, whichever is higher, capped at 100%). Medium impact as 6 securities are being removed from ASM framework, providing relief to those stocks.