Description

NSE implements Short-Term Additional Surveillance Measure (ST-ASM) Stage I on 4 securities with increased margin requirements of 50% or existing margin (whichever is higher) effective November 18, 2025.

Summary

NSE has issued a circular regarding the applicability of Short-Term Additional Surveillance Measure (ST-ASM) effective November 18, 2025. Four securities have been shortlisted for inclusion under ST-ASM Stage I: Indigo Paints Limited, Sacheerome Limited, Safe Enterprises Retail Fixtures Limited, and Venus Remedies Limited. These securities will be subject to enhanced margin requirements of 50% or existing margin (whichever is higher), with a maximum cap of 100%. The surveillance action applies to all open positions as on November 17, 2025 and new positions created from November 18, 2025 onwards.

Key Points

  • Four securities added to ST-ASM Stage I framework effective November 18, 2025
  • Margin requirement increased to 50% or existing margin, whichever is higher (capped at 100%)
  • Enhanced margins apply to open positions as on November 17, 2025 and new positions from November 18, 2025
  • No securities shortlisted for ST-ASM Stage II
  • No securities moving between Stage I and Stage II
  • Two securities excluded from ASM framework: Bulkcorp International Limited (BULKCORP) and Exxaro (EXXARO)
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Price band will be reinstated to original levels when securities exit the framework (subject to no other surveillance measures)
  • Shortlisting is purely for market surveillance and not an adverse action against the company

Regulatory Changes

This circular continues the existing Additional Surveillance Measure (ASM) framework previously established through circulars dated October 27, 2018, December 04, 2020, April 28, 2022, September 25, 2023, and September 20, 2024. No new regulatory framework is introduced; rather, this circular applies existing ST-ASM provisions to newly identified securities.

Compliance Requirements

  • NSE Members: Must ensure compliance with enhanced margin requirements for affected securities
  • Market Participants: Must arrange for additional margin of 50% or existing margin (whichever is higher) on all positions in the four shortlisted securities
  • Trading Members: Must communicate the margin requirements to their clients holding positions in affected securities
  • Margin Collection: Enhanced margins must be collected for positions held as on November 17, 2025 and all new positions from November 18, 2025 onwards
  • Risk Management: Market participants should review their exposure to affected securities and adjust positions accordingly

Important Dates

  • November 14, 2025: Circular issued
  • November 17, 2025: Last trading day before ST-ASM implementation; cutoff date for identifying open positions subject to enhanced margins; securities excluded from ASM framework effective from this date
  • November 18, 2025: ST-ASM Stage I margin requirements become effective for all open positions and new positions

Impact Assessment

Market Impact:

  • Increased margin requirements will likely reduce trading volumes and liquidity in the four affected securities
  • Higher capital requirements may lead to position unwinding or reduction by traders and investors
  • Price volatility may increase as market participants adjust their holdings

Operational Impact:

  • Trading members need to communicate margin changes to clients immediately
  • Clients holding positions in affected securities must arrange for additional margin funds
  • Brokers need to update their risk management systems to reflect enhanced margin requirements
  • Potential margin calls for clients with inadequate collateral

Securities Affected:

  1. INDIGOPNTS - Indigo Paints Limited (INE09VQ01012)
  2. SACHEEROME - Sacheerome Limited (INE1ARD01016)
  3. SAFEENTP - Safe Enterprises Retail Fixtures Limited (INE17D601016)
  4. VENUSREM - Venus Remedies Limited (INE411B01019)

Positive Development: Two securities (BULKCORP and EXXARO) are being excluded from the ASM framework, which will normalize margin requirements and potentially improve liquidity for these stocks.

Risk Mitigation: The ST-ASM framework is designed to curb excessive speculation and protect investor interests by imposing higher margins on securities exhibiting unusual price movements or other risk indicators.

Impact Justification

High margin requirements (50% minimum) imposed on listed securities significantly impacts trading costs and liquidity for affected stocks, requiring immediate action from market participants holding positions