Description

NSE adds Precision Metaliks Limited to Long-Term ASM Framework Stage I with 100% margin requirement effective November 26, 2025.

Summary

NSE has shortlisted Precision Metaliks Limited (Symbol: PRECISION, ISIN: INE0HKW01018) for inclusion under Long-Term Additional Surveillance Measure (ASM) Framework Stage I effective November 26, 2025. This measure imposes a 100% margin requirement on all open and new positions in the security.

Key Points

  • Precision Metaliks Limited added to Long-Term ASM Framework Stage I
  • 100% margin applicable on all open positions as on November 25, 2025
  • 100% margin applicable on all new positions created from November 26, 2025 onwards
  • No securities moved to Stage IV (Trade-for-Trade segment)
  • No securities graduated between stages in this circular
  • ASM framework operates in conjunction with other surveillance measures
  • Price band will be reinstated if security moves out of ASM framework
  • Shortlisting is purely for market surveillance and not adverse action against the company

Regulatory Changes

The Long-Term ASM framework continues to operate as per previous circulars (NSE/SURV/39265, NSE/SURV/45111, NSE/SURV/46557, NSE/SURV/48506, NSE/SURV/52090, NSE/SURV/63362, and NSE/SURV/64066). Securities qualifying under criteria VII would be shifted to Trade-for-Trade segment (Series: BE), though no securities met this criterion in this update.

Compliance Requirements

  • Members must ensure 100% margin collection for Precision Metaliks Limited
  • Margin requirement applies to both existing open positions and new positions
  • Members should monitor the security for any further surveillance actions
  • Market participants must comply with ASM requirements alongside all other prevailing surveillance measures

Important Dates

  • Circular Date: November 21, 2025
  • Effective Date: November 26, 2025 (for margin requirements)
  • Cut-off Date: November 25, 2025 (for existing open positions)

Impact Assessment

Market Impact: High - The 100% margin requirement significantly increases the cost of trading and holding positions in Precision Metaliks Limited, likely leading to reduced liquidity and trading volumes.

Operational Impact: High - Brokers and clearing members must ensure adequate margin collection mechanisms are in place and communicate requirements to clients holding or intending to trade this security.

Investor Impact: High - Investors holding positions will need to maintain 100% margin, substantially increasing capital requirements. This may force position liquidation for those unable to meet margin calls.

Stage I Classification: Being in Stage I indicates initial surveillance concerns. The security could progress to higher stages (II, III, or IV) with increasing restrictions if surveillance concerns persist.

Impact Justification

100% margin requirement significantly restricts trading and indicates heightened surveillance concerns for the affected security