Description

NSE implements Short-Term Additional Surveillance Measure (ST-ASM) Stage I on 7 securities with increased margin requirements of 50% or existing margin (whichever is higher, capped at 100%) effective November 10, 2025.

Summary

NSE has issued a surveillance circular implementing Short-Term Additional Surveillance Measure (ST-ASM) Stage I on 7 securities effective November 7, 2025. The circular mandates increased margin requirements of 50% or existing margin (whichever is higher), capped at 100%, effective November 10, 2025. Additionally, 4 securities are being excluded from the ASM framework. This surveillance action is part of NSE’s ongoing market monitoring framework and should not be construed as adverse action against the concerned companies.

Key Points

  • 7 securities included in ST-ASM Stage I: Bulkcorp International Limited, Kundan Edifice Limited, Keynote Financial Services Limited, LG Balakrishnan & Bros Limited, Mufin Green Finance Limited, Rajratan Global Wire Limited, and South West Pinnacle Exploration Limited
  • Margin requirement: 50% or existing margin (whichever is higher), capped at 100%
  • No securities moving to or from ST-ASM Stage II
  • 4 securities excluded from ASM framework: Arvind Port and Infra Limited, Fabtech Technologies Limited, Galaxy Medicare Limited, and Renol Polychem Limited
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance purposes and not an adverse action against companies

Regulatory Changes

This circular continues the application of the Short-Term Additional Surveillance Measure (ST-ASM) framework originally established through previous circulars dating back to October 2018. The framework provides for enhanced surveillance on securities meeting specific criteria, with graduated stages of intervention. This update implements Stage I measures on the identified securities.

Compliance Requirements

  • Trading members must apply the enhanced margin requirements of 50% or existing margin (whichever is higher, capped at 100%) on the 7 securities listed in ST-ASM Stage I
  • Enhanced margins apply to all open positions as on November 7, 2025
  • Enhanced margins apply to all new positions created from November 10, 2025 onwards
  • Members should refer to NSE’s FAQ on Additional Surveillance Measure at https://www.nseindia.com/regulations/additional-surveillance-measure for detailed information
  • For queries, members may contact surveillance@nse.co.in

Important Dates

  • November 6, 2025: Circular issued
  • November 7, 2025: Effective date for ST-ASM Stage I inclusion and ASM framework exclusions
  • November 10, 2025: Applicable margin rate comes into effect for all open positions as on November 7, 2025 and new positions created from this date

Impact Assessment

Securities Included in ST-ASM Stage I:

  1. BULKCORP (Bulkcorp International Limited) - INE0SZ301012
  2. KEL (Kundan Edifice Limited) - INE0OWX01025
  3. KEYFINSERV (Keynote Financial Services Limited) - INE681C01015
  4. LGBBROSLTD (LG Balakrishnan & Bros Limited) - INE337A01034
  5. MUFIN (Mufin Green Finance Limited) - INE08KJ01020
  6. RAJRATAN (Rajratan Global Wire Limited) - INE451D01029
  7. SOUTHWEST (South West Pinnacle Exploration Limited) - INE980Y01015

Market Impact: Traders and investors holding positions in these 7 securities will face increased margin requirements, which may reduce liquidity and trading volumes in these stocks. The higher margins are designed to discourage excessive speculation and reduce market volatility in these securities.

Securities Excluded from ASM Framework:

  1. ARVINDPORT (Arvind Port and Infra Limited) - INE0P4T01013
  2. FABTECH (Fabtech Technologies Limited) - INE0HF201011
  3. GML (Galaxy Medicare Limited) - INE09A801015
  4. RNPL (Renol Polychem Limited) - INE0VZX01015

Positive Impact: The exclusion of 4 securities from ASM framework indicates improved market behavior in these stocks, providing relief to traders with reduced surveillance constraints.

Impact Justification

Applies to 7 specific securities with enhanced margin requirements. Moderate impact on traders holding positions in these stocks. Four securities excluded from ASM framework, providing relief.