Description

NSE applies Short-Term Additional Surveillance Measure (ST-ASM) Stage I to 7 securities with 50% margin requirement effective November 26, 2025, and excludes 2 securities from ASM framework.

Summary

NSE has issued a surveillance circular applying Short-Term Additional Surveillance Measure (ST-ASM) Stage I to 7 securities effective November 25, 2025. The applicable margin rate will be 50% or existing margin (whichever is higher), capped at 100%, on all open positions as of November 25, 2025 and new positions from November 26, 2025. Additionally, 2 securities (Indigo Paints Limited and Utssav CZ Gold Jewels Limited) are being excluded from the ASM framework.

Key Points

  • 7 securities shortlisted under ST-ASM Stage I framework effective November 25, 2025
  • Margin requirement: 50% or existing margin (whichever is higher), maximum capped at 100%
  • Margins applicable on all open positions as on November 25, 2025 and new positions from November 26, 2025
  • No securities shortlisted under ST-ASM Stage II
  • No securities moving between Stage I and Stage II
  • 2 securities excluded from ASM framework: INDIGOPNTS and UTSSAV
  • ASM framework works in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not adverse action against companies

Regulatory Changes

The Short-Term Additional Surveillance Measure (ST-ASM) framework continues as per previous circulars (NSE/SURV/39265, NSE/SURV/46557, NSE/SURV/52144, NSE/SURV/58558, and NSE/SURV/64066). This circular applies the existing framework to newly identified securities that meet the ST-ASM Stage I criteria.

Compliance Requirements

  • For Trading Members: Ensure margin collection of minimum 50% (or existing margin, whichever is higher) on all open positions and new positions in the 7 listed securities
  • For Market Participants: Maintain adequate capital/margin for positions in affected securities
  • Reporting: Members should be aware that ASM framework operates alongside all other surveillance measures
  • For Queries: Contact surveillance@nse.co.in
  • Reference: FAQs available at https://www.nseindia.com/regulations/additional-surveillance-measure

Important Dates

  • November 24, 2025: Circular issue date
  • November 25, 2025: Effective date for ST-ASM Stage I applicability on listed securities; margin requirements apply to all open positions as of this date
  • November 26, 2025: Margin requirements apply to all new positions created from this date onwards

Securities Affected

ST-ASM Stage I (Newly Included - 7 Securities)

  1. ARCIIL - ARC Insulation & Insulators Limited (INE0YDV01010)
  2. CAPTRUST - Capital Trust Limited (INE707C01018)
  3. DYNAMIC - Dynamic Services & Security Limited (INE0DZ701010)
  4. MANGALAM - Mangalam Drugs And Organics Limited (INE584F01014)
  5. OWAIS - Owais Metal And Mineral Processing Limited (INE0R8M01017)
  6. POSITRON - Positron Energy Limited (INE0S3H01017)
  7. SPECTRUM - Spectrum Electrical Industries Limited (INE01EO01010)

Excluded from ASM Framework (2 Securities)

  1. INDIGOPNTS - Indigo Paints Limited (INE09VQ01012)
  2. UTSSAV - Utssav CZ Gold Jewels Limited (INE06IJ01010)

Impact Assessment

Trading Impact: The 50% minimum margin requirement represents a significant increase in capital requirements for traders holding positions in these 7 securities. This will reduce leverage and may lead to position unwinding or reduced trading activity.

Liquidity Impact: Higher margins typically result in reduced liquidity as fewer participants can afford to maintain positions. Trading volumes in affected securities may decline.

Risk Management: The measure is designed to curb excessive speculation and ensure better risk management in securities that have met surveillance criteria.

Market Participants: Brokers and traders must ensure adequate margin coverage for existing and new positions to avoid forced liquidation or margin calls.

Positive Development: Exclusion of INDIGOPNTS and UTSSAV from ASM framework indicates improved trading patterns in these securities, allowing normal margin requirements to resume.

Impact Justification

High margin requirements of 50% minimum imposed on 7 securities under ST-ASM Stage I framework, significantly impacting trading positions and capital requirements for market participants effective November 26, 2025.