Description

NSE moves four securities to Long-Term ASM Stage I with 100% margin requirement effective November 24, 2025, including Chennai Petroleum, Energy Development, Fischer Medical, and Quicktouch Technologies.

Summary

NSE has placed four securities under Long-Term Additional Surveillance Measure (LT-ASM) Stage I effective November 20, 2025, with 100% margin requirements taking effect November 24, 2025. The affected securities are Chennai Petroleum Corporation Limited, Energy Development Company Limited, Fischer Medical Ventures Limited, and Quicktouch Technologies Limited. Chennai Petroleum and Fischer Medical are being moved from Short-Term ASM (STASM) to Long-Term ASM (LTASM) framework. The circular references multiple previous circulars establishing the ASM framework dating back to October 2018.

Key Points

  • Four securities placed under Long-Term ASM Stage I framework effective November 20, 2025
  • 100% margin requirement applies to all open positions as on November 21, 2025 and new positions from November 24, 2025 onwards
  • Chennai Petroleum Corporation Limited (CHENNPETRO) - moved from STASM to LTASM
  • Energy Development Company Limited (ENERGYDEV) - newly included
  • Fischer Medical Ventures Limited (FISCHER) - moved from STASM to LTASM
  • Quicktouch Technologies Limited (QUICKTOUCH) - newly included
  • No securities moved to Stage IV (Trade-for-Trade segment)
  • No securities graduated from Stage I to Stage II, Stage II to Stage III, or Stage I to Stage IV
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance purposes and not an adverse action against companies

Regulatory Changes

The circular implements the Long-Term Additional Surveillance Measure provisions as established in previous exchange circulars (NSE/SURV/39265 dated October 27, 2018 through NSE/SURV/64066 dated September 20, 2024). The key regulatory action is the application of 100% margin requirements on the four identified securities. Securities qualifying under Criteria VII would be shifted from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE), though no securities qualified under this criterion in the current circular.

Compliance Requirements

  • Trading members must apply 100% margin on all open positions in the four listed securities as on November 21, 2025
  • 100% margin requirement applies to all new positions created from November 24, 2025 onwards in these securities
  • Members should refer to NSE FAQs on Additional Surveillance Measure at https://www.nseindia.com/regulations/additional-surveillance-measure
  • For queries, members may contact surveillance@nse.co.in
  • Members must ensure compliance with ASM framework in conjunction with all other prevailing surveillance measures

Important Dates

  • November 19, 2025: Circular issued
  • November 20, 2025: Securities officially shortlisted in Long-Term ASM Framework Stage I
  • November 21, 2025: Cut-off date for existing open positions subject to 100% margin
  • November 24, 2025: 100% margin requirement becomes effective on all positions (both existing and new)

Impact Assessment

Market Impact: High - The 100% margin requirement significantly increases capital requirements for trading these securities, likely reducing liquidity and trading volumes. This particularly impacts Chennai Petroleum Corporation, which is a larger and more actively traded stock in the energy sector.

Trading Impact: Traders and investors holding positions in these four securities will face substantially higher margin obligations starting November 24, 2025. This may force position unwinding or require additional capital infusion.

Operational Impact: Brokers and trading members need to update their risk management systems to apply the enhanced margin requirements and communicate these changes to affected clients holding positions in these securities.

Sectoral Impact: The inclusion of Chennai Petroleum Corporation from the energy sector and Fischer Medical Ventures from healthcare indicates surveillance concerns across different market segments. The transition of two securities from STASM to LTASM suggests persistent concerns warranting longer-term surveillance measures.

Impact Justification

100% margin requirement significantly impacts trading in these four securities, with immediate effect on all positions including Chennai Petroleum Corporation which is a notable energy sector company