Description

NSE announces inclusion of two securities (IFB Agro Industries Limited and Megastar Foods Limited) under Long-Term Additional Surveillance Measure (ASM) Stage-I framework with 100% margin requirement effective November 6, 2025.

Summary

NSE has issued circular 855/2025 regarding the application of Additional Surveillance Measure (ASM) framework. Two securities have been shortlisted for inclusion under Long-Term Additional Surveillance Measure Stage-I: IFB Agro Industries Limited (IFBAGRO) and Megastar Foods Limited (MEGASTAR). Both securities are being moved from Short-Term ASM (STASM) to Long-Term ASM (LTASM) framework. A 100% margin requirement will be applicable on all open positions as of October 7, 2025, and new positions created from October 10, 2025 onwards.

Key Points

  • Two securities included in Long-Term ASM Framework Stage-I: IFBAGRO (INE076C01018) and MEGASTAR (INE00EM01016)
  • Both securities moved from STASM to LTASM framework
  • 100% margin rate applicable on affected securities
  • No securities listed in Stage-IV or moving between other stages
  • ASM is a market surveillance measure and not an adverse action against the company
  • ASM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

The circular implements Long-Term Additional Surveillance Measure provisions as per previous NSE circulars dated October 27, 2018, July 22, 2020, December 4, 2020, June 4, 2021, April 22, 2022, August 9, 2024, and September 20, 2024. The surveillance action applies enhanced margin requirements to securities meeting specific criteria under the ASM framework.

Compliance Requirements

  • Market participants must ensure 100% margin coverage on all open positions in IFBAGRO and MEGASTAR as of October 7, 2025
  • 100% margin must be maintained on all new positions created from October 10, 2025 onwards
  • Members should inform clients about the enhanced surveillance measures
  • Queries should be directed to surveillance@nse.co.in

Important Dates

  • November 4, 2025: Circular issuance date
  • November 6, 2025: Effective date for inclusion of securities in Long-Term ASM Stage-I
  • October 7, 2025: Reference date for open positions subject to 100% margin
  • October 10, 2025: Date from which 100% margin applies on open positions and new positions

Impact Assessment

The inclusion of IFBAGRO and MEGASTAR in Long-Term ASM Stage-I will have significant impact on trading activity in these securities. The 100% margin requirement substantially increases capital requirements for traders and investors, likely reducing speculative trading and improving price stability. Liquidity in these securities may decrease due to higher capital costs. The measure is designed to protect market integrity and investor interests by curbing excessive volatility and speculation. Market participants holding positions in these securities will need to arrange additional funds to meet margin requirements or liquidate positions.

Impact Justification

High impact due to 100% margin requirement on affected securities, significantly restricting trading flexibility and liquidity for these stocks