Description

NSE circular announcing securities being placed under Short-Term Additional Surveillance Measure framework effective November 19, 2025, including GE Power India Limited and Vaxtex Cotfab Limited in Stage-I.

Summary

NSE has issued a surveillance circular regarding the applicability of Short-Term Additional Surveillance Measure (ST-ASM) framework effective November 19, 2025. Two securities have been shortlisted for ST-ASM Stage-I: GE Power India Limited (GVPIL) and Vaxtex Cotfab Limited (VCL). Additionally, Mega Flex Plastics Limited has been moved from ST-ASM to the Enhanced Surveillance Measure (ESM) framework. The circular provides a consolidated list of 29 securities currently under the ASM framework across various stages.

Key Points

  • Two securities added to ST-ASM Stage-I: GE Power India Limited (GVPIL, ISIN: INE878A01011) and Vaxtex Cotfab Limited (VCL, ISIN: INE098201036)
  • No securities placed in ST-ASM Stage-II
  • No securities moving between stages (Stage-I to Stage-II or vice versa)
  • Mega Flex Plastics Limited (MEGAFLEX, ISIN: INE0G1D01014) excluded from ST-ASM framework and moved to ESM framework
  • Consolidated ASM framework currently contains 29 securities, all in Stage-I
  • Measures effective from November 19, 2025

Regulatory Changes

The Short-Term Additional Surveillance Measure (ST-ASM) is a surveillance framework implemented by NSE to monitor securities exhibiting abnormal price movements or trading patterns. Securities under this framework face enhanced surveillance including:

  • Price bands restrictions
  • Trade-for-trade (T2T) settlement
  • 100% margin requirements
  • Additional disclosure requirements from listed entities

The framework operates in two stages, with Stage-II having more stringent surveillance measures than Stage-I.

Compliance Requirements

  • Trading members must ensure compliance with enhanced margin requirements for securities under ST-ASM
  • All trades in these securities will be on a trade-for-trade basis with no netting of positions
  • 100% upfront margin collection mandatory from clients
  • Listed companies may need to provide additional disclosures as required by the exchange
  • Members must update their risk management systems to reflect the new surveillance categorization

Important Dates

  • Circular Issue Date: November 18, 2025
  • Effective Date: November 19, 2025 - ST-ASM measures become applicable for GVPIL and VCL
  • Effective Date: November 19, 2025 - MEGAFLEX excluded from ST-ASM and moved to ESM

Impact Assessment

Market Impact: The placement of securities under ST-ASM significantly impacts their trading dynamics. Both GVPIL and VCL will experience reduced liquidity due to trade-for-trade settlement requirements and higher margin obligations. This typically leads to reduced speculative activity and lower trading volumes.

Investor Impact: Retail and institutional investors holding these securities will face 100% upfront margin requirements, increasing the cost of trading. Intraday trading will not be possible as positions cannot be netted. This may lead to selling pressure in the short term.

Operational Impact: Brokers and trading members must update their systems to enforce T2T settlement and enhanced margin collection for the affected securities. The move of MEGAFLEX to ESM indicates escalation of surveillance concerns.

Securities Affected Summary:

  • GVPIL (GE Power India Limited): Large-cap power sector company now under enhanced surveillance
  • VCL (Vaxtex Cotfab Limited): Textile sector company facing trading restrictions
  • 29 Total Securities: Currently under various stages of ASM framework, all in Stage-I including major names like Chennai Petroleum Corporation Limited, Indigo Paints Limited, and Yatra Online Limited

Impact Justification

High severity surveillance measure affecting trading parameters for securities showing unusual price movements. Direct impact on trading costs and liquidity for affected stocks.