Description

NSE announces securities under Long Term Additional Surveillance Measure with 100% margin requirement effective November 18, 2025. Sahasra Electronic Solutions Limited moves from Stage-I to Stage-II.

Summary

NSE has issued a circular regarding the applicability of Additional Surveillance Measure (ASM) for securities meeting Long Term ASM criteria. The exchange will impose 100% margin requirement on all open and new positions effective November 18, 2025. One security, Sahasra Electronic Solutions Limited (SAHASRA), has been identified to move from Long-Term ASM Framework Stage-I to Stage-II. No securities are being newly added to Stage-I or Stage-IV, and no securities are moving to Trade-for-Trade segment under this circular.

Key Points

  • 100% margin requirement will apply on all open positions as on November 17, 2025 and new positions from November 18, 2025 onwards
  • Sahasra Electronic Solutions Limited (SAHASRA, ISIN: INE0RBQ01018) moves from Long-Term ASM Stage-I to Stage-II
  • No new securities added to Long-Term ASM Framework Stage-I
  • No securities added to or moving to Stage-IV (which would trigger Trade-for-Trade classification)
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Securities under Stage-IV would be shifted from Rolling Settlement (Series: EQ) to Trade-for-Trade segment (Series: BE)
  • Shortlisting is purely for market surveillance purposes and not an adverse action against companies

Regulatory Changes

This circular implements the Long-Term Additional Surveillance Measure (Long Term-ASM) framework as per previous circulars dated October 27, 2018, July 22, 2020, December 04, 2020, June 04, 2021, April 22, 2022, August 09, 2024, and September 20, 2024. The primary regulatory change is the imposition of 100% margin on securities meeting ASM criteria, which restricts leverage and increases capital requirements for trading these securities.

Compliance Requirements

  • All NSE members must ensure 100% margin is collected on open positions in affected securities as on November 17, 2025
  • 100% margin must be collected on all new positions created from November 18, 2025 onwards in securities under Long-Term ASM
  • Market participants must comply with ASM framework alongside all other surveillance measures imposed by the exchange
  • Members should refer to NSE’s FAQ on Additional Surveillance Measure at https://www.nseindia.com/regulations/additional-surveillance-measure for detailed guidance
  • Queries should be directed to surveillance@nse.co.in

Important Dates

  • November 13, 2025: Circular issued
  • November 14, 2025: Securities shortlisted under Long-Term ASM Framework (various stages) become effective
  • November 17, 2025: Last date for existing positions before new margin requirements
  • November 18, 2025: 100% margin requirement becomes applicable on all open positions and new positions; Securities qualifying under Criteria VII (if any) would shift to Trade-for-Trade segment on this date

Impact Assessment

Market Impact: The 100% margin requirement significantly reduces leverage availability for trading in affected securities, which will likely reduce trading volumes and liquidity. This measure is designed to curb excessive speculation and volatility in securities exhibiting abnormal price movements.

Operational Impact: Brokers and trading members must ensure adequate margin collection systems are in place. Traders holding positions in Sahasra Electronic Solutions Limited will need to provide full funding (100% margin) by November 17, 2025, which may force position closures if adequate capital is unavailable.

Investor Impact: Retail and institutional investors trading in SAHASRA will face increased capital requirements, effectively eliminating intraday leverage and requiring full upfront payment for positions. This protective measure aims to reduce risk but may limit participation in these securities.

Company Impact: While NSE clarifies this is not an adverse action, securities under ASM may experience reduced trading interest and liquidity, potentially affecting price discovery and market depth.

Impact Justification

100% margin requirement significantly impacts trading in affected securities, restricting liquidity and increasing capital requirements for market participants