Description

NSE introduces Short-Term Additional Surveillance Measure (ST-ASM) Stage I for four securities with increased margin requirements of 50% or existing margin (whichever is higher) effective November 11, 2025.

Summary

The National Stock Exchange of India has issued a circular regarding the applicability of Short-Term Additional Surveillance Measure (ST-ASM) for select securities. Four securities have been identified for inclusion under ST-ASM Stage I, while two securities are being excluded from the ASM framework. The surveillance measure involves enhanced margin requirements to manage risk in securities exhibiting unusual price movements or trading patterns.

Key Points

  • Four securities shortlisted for ST-ASM Stage I: Dhariwalcorp Limited (DHARIWAL), Exxaro Tiles Limited (EXXARO), Lead Reclaim And Rubber Products Limited (LRRPL), and Womancart Limited (WOMANCART)
  • Margin requirement increased to 50% or existing margin, whichever is higher (capped at 100%)
  • Changes effective from November 11, 2025 on all open positions as on November 10, 2025 and new positions
  • Two securities excluded from ASM framework: Bhagyanagar India Limited (BHAGYANGR) and Bharat Wire Ropes (BHARATWIRE)
  • No securities moving between Stage I and Stage II
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance purposes and not an adverse action against the company

Regulatory Changes

This circular continues the framework established by previous circulars (NSE/SURV/39265 dated October 27, 2018, NSE/SURV/46557 dated December 04, 2020, NSE/SURV/52144 dated April 28, 2022, NSE/SURV/58558 dated September 25, 2023, and NSE/SURV/64066 dated September 20, 2024) regarding Additional Surveillance Measures. The ST-ASM framework provides for dynamic inclusion and exclusion of securities based on surveillance criteria.

Compliance Requirements

  • Trading members must apply minimum margin of 50% or existing margin (whichever is higher, maximum 100%) on specified securities
  • Margin requirements apply to all open positions as on November 10, 2025
  • Margin requirements apply to all new positions created from November 11, 2025 onwards
  • Market participants should monitor the ASM framework as it operates alongside other surveillance measures
  • Members should refer to FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure for detailed information

Important Dates

  • Circular Date: November 07, 2025
  • Effective Date: November 11, 2025
  • Cut-off for Open Positions: November 10, 2025

Impact Assessment

Market Impact: The inclusion of four securities in ST-ASM Stage I will increase trading costs and reduce leverage available to traders in these stocks. The 50% minimum margin requirement (or higher) may lead to reduced liquidity and trading volumes in the affected securities.

Investor Impact: Investors with existing positions in DHARIWAL, EXXARO, LRRPL, and WOMANCART will need to maintain higher margins, potentially requiring additional capital infusion. New position takers will face higher initial margin requirements.

Positive Development: The exclusion of BHAGYANGR and BHARATWIRE from the ASM framework suggests improved price stability in these securities, allowing normal margin requirements and price bands to be restored.

Risk Management: The measure is designed to protect market integrity by managing risk in securities with unusual price movements or trading patterns. Market participants should exercise caution when trading in ST-ASM securities and be prepared for potential volatility.

Impact Justification

Impacts specific securities with increased margin requirements which affects trading liquidity and costs for market participants holding positions in these stocks