Description

NSE announces inclusion of three securities under ST-ASM Stage I framework with increased margin requirements of 50% effective November 12, 2025.

Summary

National Stock Exchange of India has issued surveillance circular NSE/SURV/71217 dated November 10, 2025, announcing the inclusion of three securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I. The securities are Global Surfaces Limited (GSLSU), Refractory Shapes Limited (REFRACTORY), and Raghav Productivity Enhancers Limited (RPEL). These stocks will be subject to enhanced margin requirements effective November 12, 2025. Additionally, Dhariwalcorp Limited has been excluded from the ST-ASM framework as it has moved to the ESM framework.

Key Points

  • Three securities included under ST-ASM Stage I: GSLSU, REFRACTORY, and RPEL
  • Applicable margin rate increased to 50% or existing margin (whichever is higher), capped at 100%
  • Margin applies to all open positions as on November 11, 2025 and new positions from November 12, 2025
  • No securities listed under ST-ASM Stage II
  • No securities moving between stages
  • Dhariwalcorp Limited (DHARIWAL) excluded from ASM framework as it moved to ESM framework
  • ASM framework operates in conjunction with other surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against companies

Regulatory Changes

This circular continues the implementation of the Additional Surveillance Measure (ASM) framework originally introduced through circulars dated October 27, 2018, December 04, 2020, April 28, 2022, September 25, 2023, and September 20, 2024. The ST-ASM framework specifically targets securities showing short-term unusual price movements or volatility patterns that warrant enhanced surveillance.

Compliance Requirements

  • Trading members must ensure applicable margin of 50% or existing margin (whichever is higher) is collected on the three specified securities
  • Maximum margin rate is capped at 100%
  • Margin requirements apply to both existing open positions as on November 11, 2025 and all new positions created from November 12, 2025
  • Members should monitor positions in these securities for compliance with enhanced margin requirements
  • Market participants must comply with ASM framework alongside all other prevailing surveillance measures

Important Dates

  • November 10, 2025: Circular issued
  • November 11, 2025: Cut-off date for existing open positions subject to new margin requirements
  • November 12, 2025: Enhanced margin requirements become effective for all positions

Impact Assessment

Trading Impact: The 50% minimum margin requirement will significantly increase capital requirements for traders holding positions in the three affected securities. This may lead to reduced liquidity and trading volumes in these stocks as the cost of carrying positions increases.

Market Participants: Traders with existing positions in GSLSU, REFRACTORY, or RPEL as of November 11, 2025 will need to arrange additional margin funds. New position-takers will face higher upfront capital requirements, potentially deterring speculative activity.

Surveillance Objective: The measure aims to curb excessive speculation and unusual price movements in these securities by making trading more capital-intensive. This is a protective mechanism rather than a punitive action against the companies.

Investor Sentiment: While the measure may be perceived negatively in the short term, it serves to protect market integrity and prevent potential manipulation or excessive volatility in these securities.

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

Impact Justification

Affects three specific securities with enhanced margin requirements. Medium impact as it targets specific stocks under surveillance with 50% margin requirement, impacting trading positions but not market-wide.