Description

NSE places three securities under Long-Term ASM Stage-I with 100% margin requirement effective December 1, 2025. Securities include AMBANI ORGOCHEM LIMITED, Net Avenue Technologies Limited, and SVP GLOBAL TEXTILES LIMITED.

Summary

The National Stock Exchange of India (NSE) has issued a surveillance circular placing three securities under the Long-Term Additional Surveillance Measure (Long-Term ASM) Framework Stage-I, effective November 27, 2025. A 100% margin requirement will be applicable on all open positions as of November 28, 2025, and on new positions created from December 1, 2025 onwards. This measure is part of NSE’s ongoing market surveillance framework to monitor securities exhibiting specific risk characteristics.

Key Points

  • Three securities shortlisted under Long-Term ASM Framework Stage-I effective November 27, 2025
  • 100% margin requirement applicable from December 1, 2025
  • Margin applies to both existing open positions (as on November 28, 2025) and new positions from December 1, 2025
  • No securities moved to Stage-IV (Trade-for-Trade segment) in this circular
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Securities under ASM: AMBANI ORGOCHEM LIMITED (AMBANIORGO), Net Avenue Technologies Limited (CBAZAAR), and SVP GLOBAL TEXTILES LIMITED (SVPGLOB)
  • No securities progressed from Stage-I to Stage-II, Stage-II to Stage-III, or Stage-I to Stage-IV

Regulatory Changes

This circular implements the Long-Term Additional Surveillance Measure (Long-Term ASM) framework as per previous circulars dated October 27, 2018, July 22, 2020, December 04, 2020, June 04, 2021, April 22, 2022, August 09, 2024, and September 20, 2024.

The key regulatory action is the application of 100% margin on the three identified securities. Securities qualifying under Criteria VII at Stage-IV would be shifted from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE), though no securities met this criteria in the current circular.

Compliance Requirements

For NSE Members:

  • Ensure 100% margin collection on all open positions in the three identified securities as on November 28, 2025
  • Apply 100% margin on all new positions created from December 1, 2025 onwards
  • Comply with all other prevailing surveillance measures concurrently
  • Monitor client positions in affected securities

For Investors/Traders:

  • Maintain adequate margins (100%) for positions in AMBANIORGO, CBAZAAR, and SVPGLOB
  • Be aware that trading in these securities will require full margin funding

Important Dates

  • November 26, 2025: Circular issuance date (Circular Ref. No: 914/2025)
  • November 27, 2025: Securities shortlisted under Long-Term ASM Stage-I become effective
  • November 28, 2025: Cut-off date for existing open positions subject to 100% margin
  • December 1, 2025: 100% margin requirement becomes applicable on all open positions and new positions

Impact Assessment

Market Impact:

  • Significantly reduced liquidity in the three affected securities due to 100% margin requirement
  • Potential increase in volatility as traders adjust positions ahead of margin implementation
  • Deterrent effect on speculative trading in these securities

Operational Impact:

  • Brokers must ensure adequate margin collection systems for affected securities
  • Existing position holders may need to bring additional funds or reduce positions
  • Trading volumes expected to decline substantially in these securities

Investor Impact:

  • Retail and institutional investors holding positions will face increased capital requirements
  • Leverage trading becomes impossible with 100% margin
  • Potential forced liquidation for investors unable to meet margin requirements

Securities Affected:

  1. AMBANIORGO - AMBANI ORGOCHEM LIMITED (ISIN: INE00C501018)
  2. CBAZAAR - Net Avenue Technologies Limited (ISIN: INE518X01015)
  3. SVPGLOB - SVP GLOBAL TEXTILES LIMITED (ISIN: INE308E01029)

NSE clarifies that the ASM framework is purely a market surveillance measure and should not be construed as adverse action against the concerned companies. For queries, members can contact surveillance@nse.co.in.

Impact Justification

High severity due to 100% margin requirement on affected securities, significantly impacting trading liquidity and investor positions. Effective date is imminent (December 1, 2025).