Description

NSE announces securities included in Long-Term ASM framework with 100% margin requirements and trade-for-trade segment shifts effective November 13, 2025.

Summary

NSE has issued circular 872/2025 regarding the applicability of Long-Term Additional Surveillance Measure (ASM) framework. The circular identifies securities that have satisfied criteria for inclusion under Long-Term ASM, with applicable surveillance actions including 100% margin requirements effective November 13, 2025. Additionally, securities qualifying under Criteria VII (Stage IV) will be shifted from Rolling Settlement segment (EQ series) to Trade-for-Trade segment (BE series).

Key Points

  • 100% margin rate applicable on all open positions as of November 12, 2025 and new positions from November 13, 2025 onwards
  • United Polyfab Gujarat Limited (UNITEDPOLY) newly shortlisted in Long-Term ASM Framework Stage IV
  • Lancor Holdings Limited (LANCORHOL) moved from Stage I to Stage II
  • Securities in Stage IV to be shifted from Rolling Settlement (EQ) to Trade-for-Trade segment (BE) effective November 13, 2025
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the company

Regulatory Changes

The circular implements enhanced surveillance measures under the Long-Term ASM framework:

Stage Transitions:

  • Stage I to Stage II: LANCORHOL (Lancor Holdings Limited, ISIN: INE572G01025)
  • New Stage IV Entry: UNITEDPOLY (United Polyfab Gujarat Limited, ISIN: INE368U01029)
  • Stage I: No new securities added
  • Stage II to Stage III: No securities moved
  • Stage I to Stage IV: No securities moved
  • Stage II to Stage IV: No securities moved

Trading Mechanism Changes: Securities in Stage IV will be shifted from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE) on a T+3 basis.

Compliance Requirements

For Trading Members:

  • Ensure 100% margin collection on all positions (open and new) in affected securities from November 13, 2025
  • Update trading systems to reflect trade-for-trade mechanism for Stage IV securities
  • Inform clients about the enhanced surveillance measures and their implications

For Market Participants:

Important Dates

  • November 10, 2025: Circular issuance date
  • November 11, 2025: Effective date for ASM stage classifications
  • November 12, 2025: Last day before margin changes take effect
  • November 13, 2025:
    • 100% margin requirement becomes applicable on all open positions
    • 100% margin required on all new positions
    • Stage IV securities shifted to Trade-for-Trade segment (BE series)

Impact Assessment

Market Impact:

  • High impact on trading liquidity in affected securities due to 100% margin requirements
  • Reduced trading flexibility as intraday positions will require full margin
  • Complete elimination of leverage for affected securities

Operational Impact:

  • Trading members must adjust margin collection mechanisms
  • Enhanced monitoring required for positions in ASM securities
  • System updates needed to handle trade-for-trade settlement for Stage IV securities

Investor Impact:

  • Significantly higher capital requirements for taking positions in UNITEDPOLY and LANCORHOL
  • UNITEDPOLY positions will require delivery-based settlement only (no intraday trading)
  • Potential reduction in trading volumes and liquidity in affected securities

Risk Mitigation: The ASM framework aims to address unusual price movements and excessive speculation in securities, protecting market integrity and investor interests through enhanced surveillance and stricter trading conditions.

Impact Justification

Imposes 100% margin requirements and shifts securities to trade-for-trade segment, significantly impacting trading in affected stocks