Description

NSE circular announcing securities being placed under Long-Term Additional Surveillance Measure (ASM) framework with 100% margin requirements and potential trade-for-trade restrictions.

Summary

NSE has issued a surveillance circular identifying securities that have satisfied criteria for inclusion under Long-Term Additional Surveillance Measure (ASM) framework. The circular mandates 100% margin requirements effective November 17, 2025, on all open and new positions. Securities include Monolithisch India Limited, Thangamayil Jewellery Limited (moved from ST-ASM to LT-ASM), and Tembo Global Industries Limited moving to Stage-II. Securities qualifying under criteria VII will be shifted from Rolling Settlement (EQ) to Trade-for-Trade segment (BE).

Key Points

  • 100% margin applicable on all open positions as on November 14, 2025 and new positions from November 17, 2025 onwards
  • Two securities added to Long-Term ASM Framework Stage-I: Monolithisch India Limited and Thangamayil Jewellery Limited
  • Thangamayil Jewellery Limited moved from Short-Term ASM (ST-ASM) to Long-Term ASM (LT-ASM) framework
  • Tembo Global Industries Limited moves from Stage-I to Stage-II of Long-Term ASM framework
  • No securities shortlisted for Stage-IV or movement to Stage-III or Stage-IV in this circular
  • ASM framework applies in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance purposes and not an adverse action against companies

Regulatory Changes

The circular implements the Long-Term Additional Surveillance Measure framework as per previous NSE circulars (NSE/SURV/39265, NSE/SURV/45111, NSE/SURV/46557, NSE/SURV/48506, NSE/SURV/52090, NSE/SURV/63362, and NSE/SURV/64066). Securities qualifying under Criteria VII will be shifted from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE) on a T+3 basis.

Compliance Requirements

  • NSE members must ensure 100% margin is collected on all open positions in affected securities as on November 14, 2025
  • 100% margin must be applied to all new positions created from November 17, 2025 onwards
  • Members should adjust their risk management systems to accommodate the increased margin requirements
  • Trading members must prepare for potential shift of Stage-IV securities to Trade-for-Trade segment

Important Dates

  • November 12, 2025: Circular issue date
  • November 13, 2025: Effective date for securities shortlisting under ASM framework
  • November 14, 2025: Cut-off date for open positions subject to 100% margin
  • November 17, 2025: 100% margin becomes applicable on all open and new positions
  • November 17, 2025: Stage-IV securities (if any) shift from EQ to BE series

Impact Assessment

Market Impact: High - The 100% margin requirement significantly increases capital requirements for traders and investors holding positions in affected securities. This will reduce leverage opportunities and may lead to forced liquidation of positions by those unable to meet margin calls.

Liquidity Impact: High - Enhanced surveillance measures typically result in reduced trading volumes and liquidity. The potential shift to Trade-for-Trade segment for Stage-IV securities eliminates intraday trading opportunities.

Investor Impact: Investors holding these securities must arrange for full margin (100% of position value) by November 17, 2025, or face potential square-off of positions. The increased cost of carry may deter new investments in these securities.

Affected Securities:

  • Stage-I New Entries: Monolithisch India Limited (INE1DV401010), Thangamayil Jewellery Limited (INE085J01014)
  • Stage-I to Stage-II: Tembo Global Industries Limited (INE869Y01010)

For more information, market participants can refer to NSE’s FAQ on Additional Surveillance Measure at https://www.nseindia.com/regulations/additional-surveillance-measure or contact surveillance@nse.co.in.

Impact Justification

Imposes 100% margin requirements on affected securities and potential shift to trade-for-trade segment, significantly restricting trading flexibility and liquidity for investors holding these stocks