Description

NSE announces securities included in ST-ASM Stage I framework with 50% margin requirement effective November 17, 2025, and securities excluded from ASM framework.

Summary

The National Stock Exchange has issued a circular on the applicability of Short-Term Additional Surveillance Measure (ST-ASM) framework. Four securities have been identified for inclusion under ST-ASM Stage I, which will attract higher margin requirements of 50% or existing margin (whichever is higher), capped at 100%. Additionally, five securities are being excluded from the ASM framework. These measures are purely for market surveillance and should not be construed as adverse actions against the concerned companies.

Key Points

  • Four securities shortlisted for ST-ASM Stage I: Pearl Global Industries Limited (PGIL), Positron Energy Limited (POSITRON), Srivari Spices And Foods Limited (SSFL), and Yatra Online Limited (YATRA)
  • Margin requirement: 50% or existing margin (whichever is higher), capped at maximum 100%
  • No securities in ST-ASM Stage II currently
  • No movements between Stage I and Stage II
  • Five securities excluded from ASM framework: Dredging Corporation of India Limited (DREDGECORP), Fineotex Chemical Limited (FCL), Jay Jalaram Technologies Limited (KORE), Lakshya Powertech Limited (LAKSHYA), and TD Power Systems Limited (TDPOWERSYS)
  • Jay Jalaram Technologies Limited moved from ST-ASM to ESM framework
  • ASM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

This circular implements the Short-Term Additional Surveillance Measure framework as per earlier Exchange Circulars dated October 27, 2018, December 04, 2020, April 28, 2022, September 25, 2023, and September 20, 2024. The measure is designed to enhance market surveillance for securities exhibiting abnormal trading patterns.

Compliance Requirements

  • Trading members must apply enhanced margins of 50% or existing margin (whichever is higher) on all open positions as of November 14, 2025
  • Same margin requirements apply to new positions created from November 17, 2025 onwards
  • Maximum margin is capped at 100%
  • Members must comply with ASM framework provisions alongside all other surveillance measures imposed by the Exchange
  • For queries, members should contact surveillance@nse.co.in

Important Dates

  • November 13, 2025: Circular issued
  • November 14, 2025: Effective date for securities inclusion/exclusion from ASM framework
  • November 17, 2025: Enhanced margin requirements become applicable on all open positions as on November 14, 2025 and new positions created thereafter

Impact Assessment

Securities Entering ST-ASM Stage I: The four securities (PGIL, POSITRON, SSFL, YATRA) will face increased trading costs due to higher margin requirements, which may reduce liquidity and trading volumes. Market participants holding these securities will need to maintain higher margins, potentially impacting their trading strategies and capital deployment.

Securities Exiting ASM Framework: The five securities (DREDGECORP, FCL, KORE, LAKSHYA, TDPOWERSYS) being excluded from ASM framework will benefit from normalized trading conditions and reduced margin requirements, potentially improving liquidity and investor interest.

Overall Market Impact: Limited to specific securities under surveillance. The measure reinforces NSE’s commitment to market integrity and investor protection through enhanced surveillance of securities with unusual price movements or trading patterns.

Impact Justification

Affects margin requirements for 4 securities entering ST-ASM Stage I and provides relief to 5 securities exiting ASM framework. Impact limited to specific securities under surveillance.