Description

NSE announces inclusion of 6 securities under ST-ASM Stage I with increased margin requirements of 50% or existing margin (whichever is higher) effective November 13, 2025.

Summary

NSE has announced the inclusion of 6 securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective November 12, 2025. The applicable margin rate will be 50% or existing margin (whichever is higher), capped at maximum 100%, effective November 13, 2025 on all open positions and new positions. Additionally, 2 securities (SANDUMA and VELS) are being excluded from the ASM framework. This circular is a continuation of NSE’s ongoing surveillance framework to monitor securities exhibiting abnormal price movements or trading patterns.

Key Points

  • 6 securities added to ST-ASM Stage I: Gallantt Ispat Limited, Jay Bee Laminations Limited, Jay Jalaram Technologies Limited, Mega Flex Plastics Limited, Transformers And Rectifiers (India) Limited, and V Marc India Limited
  • Margin requirement: 50% or existing margin (whichever is higher), subject to maximum 100%
  • Margin applies to all open positions as on November 12, 2025 and new positions from November 13, 2025
  • No securities shortlisted in ST-ASM Stage II
  • No securities moving between Stage I and Stage II
  • 2 securities excluded from ASM framework: Sandur Manganese & Iron Ores Limited (SANDUMA) and Vels Film International Limited (VELS)
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Inclusion is purely for market surveillance purposes and not an adverse action against the companies

Regulatory Changes

This circular implements the Short-Term Additional Surveillance Measure (ST-ASM) framework as per previous Exchange 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). The surveillance action involves enhanced margin requirements for securities that satisfy specific criteria under the ST-ASM framework.

Compliance Requirements

  • Trading members must ensure applicable margin of 50% or existing margin (whichever is higher) is collected on all open positions in the 6 listed securities as on November 12, 2025
  • Same margin requirements apply to all new positions created from November 13, 2025 onwards
  • Maximum margin is capped at 100%
  • Members should note that ASM framework applies in addition to all other existing surveillance measures
  • Market participants should refer to NSE’s FAQ on Additional Surveillance Measure at https://www.nseindia.com/regulations/additional-surveillance-measure for detailed information
  • Queries may be directed to surveillance@nse.co.in

Important Dates

  • November 11, 2025: Circular issued
  • November 12, 2025: Effective date for securities inclusion/exclusion from ASM framework
  • November 13, 2025: Enhanced margin requirements become applicable on all open positions as on November 12, 2025 and new positions created from this date

Impact Assessment

Trading Impact: High - The increased margin requirement of minimum 50% will significantly impact traders and investors holding positions in the affected securities. This will increase capital requirements and reduce leverage availability, potentially leading to reduced trading volumes and liquidity in these stocks.

Market Participants: Brokers and traders with existing positions in GALLANTT, JAYBEE, KORE, MEGAFLEX, TARIL, and VMARCIND will need to arrange for additional margin funds or reduce positions to meet the enhanced requirements.

Positive Development: The exclusion of SANDUMA and VELS from ASM framework indicates improved trading patterns in these securities, allowing normal margin requirements to resume.

Risk Management: The ST-ASM framework is a preventive surveillance measure to curb excessive speculation and protect investor interests in securities showing abnormal price/volume patterns. The enhanced margins aim to reduce volatility and ensure market stability.

Securities Details

Added to ST-ASM Stage I (w.e.f. November 12, 2025)

  1. GALLANTT - Gallantt Ispat Limited (INE297H01019)
  2. JAYBEE - Jay Bee Laminations Limited (INE0SMY01017)
  3. KORE - Jay Jalaram Technologies Limited (INE0J6801010)
  4. MEGAFLEX - Mega Flex Plastics Limited (INE0G1D01014)
  5. TARIL - Transformers And Rectifiers (India) Limited (INE763I01026)
  6. VMARCIND - V Marc India Limited (INE0GXK01018)

Excluded from ASM Framework (w.e.f. November 12, 2025)

  1. SANDUMA - Sandur Manganese & Iron Ores Limited (INE149K01016)
  2. VELS - Vels Film International Limited (INE0I3H01019)

Impact Justification

High importance and impact due to significant increase in margin requirements (minimum 50%) for affected securities, directly impacting trading costs and liquidity for market participants with positions in these stocks.