Description

NSE places Rajratan Global Wire Limited under Long-Term ASM Framework Stage-I with 100% margin requirement effective November 19, 2025.

Summary

NSE has issued surveillance measures under the Additional Surveillance Measure (ASM) framework, placing Rajratan Global Wire Limited (Symbol: RAJRATAN, ISIN: INE451D01029) under Long-Term ASM Framework Stage-I effective November 17, 2025. This security has been moved from Short-Term ASM (STASM) to Long-Term ASM (LTASM) framework. A 100% margin requirement will apply on all open and new positions starting November 19, 2025.

Key Points

  • One security (RAJRATAN) shortlisted in Long-Term ASM Framework Stage-I
  • Security moved from STASM to LTASM framework
  • 100% margin rate applicable on all positions
  • No securities in Stage-IV (Trade-for-Trade segment)
  • No securities moving between stages (Stage-I to Stage-II, Stage-II to Stage-III, or Stage-I to Stage-IV)
  • ASM framework operates in conjunction with other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the company

Regulatory Changes

The circular implements provisions of the Long-Term Additional Surveillance Measure framework as outlined in previous circulars (NSE/SURV/39265 dated October 27, 2018, and subsequent updates through NSE/SURV/64066 dated September 20, 2024).

Key regulatory provisions:

  • Securities qualifying under criteria VII (Scrips shifted to Stage IV) shall be moved from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE)
  • Price bands for securities exiting the framework will be reinstated to pre-ASM levels, unless subject to other surveillance measures

Compliance Requirements

For Market Participants:

  • Ensure 100% margin coverage for RAJRATAN on all open positions as of November 18, 2025
  • Maintain 100% margin for new positions in RAJRATAN created from November 19, 2025 onwards
  • Monitor position limits and margin requirements in accordance with ASM framework
  • Comply with all other prevailing surveillance measures simultaneously

For Members:

  • Update risk management systems to reflect new margin requirements
  • Communicate changes to clients holding positions in affected security
  • Direct queries to surveillance@nse.co.in

Important Dates

  • November 14, 2025: Circular issued
  • November 17, 2025: RAJRATAN shortlisted in Long-Term ASM Framework Stage-I
  • November 18, 2025: Last day before margin requirements apply
  • November 19, 2025: 100% margin requirement becomes effective on all open and new positions

Impact Assessment

Market Impact:

  • High impact on RAJRATAN (Rajratan Global Wire Limited) stockholders and traders
  • 100% margin requirement significantly increases capital requirements for positions
  • May reduce trading volumes and liquidity in the affected security
  • Potential for position unwinding by traders unable to meet margin requirements

Operational Impact:

  • Brokers must update margin collection systems
  • Clients holding RAJRATAN positions need to arrange additional funds
  • Risk management systems require recalibration for affected security

Investor Considerations:

  • Movement from STASM to LTASM indicates persistent surveillance concerns
  • Investors should review positions and assess liquidity needs
  • Enhanced surveillance does not imply fundamental issues with the company itself
  • Further escalation to Stage-IV could result in Trade-for-Trade segment classification

Reference: For detailed information on ASM framework, refer to NSE FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure

Impact Justification

High impact for RAJRATAN stockholders due to 100% margin requirement, but affects only one security. Medium overall importance as part of routine surveillance framework.