Description

NSE circular regarding Long-Term Additional Surveillance Measure (ASM) framework with no securities currently shortlisted for any stage as of November 28, 2025.

Summary

NSE issued a circular on November 27, 2025, regarding the Additional Surveillance Measure (ASM) framework. The circular references previous circulars dating from October 2018 to September 2024 establishing the ASM framework. However, the attached annexure shows that no securities have satisfied the criteria for inclusion under Long-Term ASM at any stage as of November 28, 2025.

Key Points

  • All Long-Term ASM Framework stages (I, II, III, IV) show ‘Nil’ entries for November 28, 2025
  • No securities are moving between ASM stages
  • ASM framework remains in effect in conjunction with other surveillance measures
  • The framework is purely for market surveillance and not an adverse action against companies
  • Members can refer to FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure

Regulatory Changes

No new regulatory changes introduced. The circular reaffirms existing ASM framework provisions:

  • Long-Term ASM Margin Requirements: 100% margin applicable on qualifying securities effective December 02, 2025 on all open positions from December 01, 2025 and new positions from December 02, 2025 onwards
  • Trade-for-Trade Shift: Securities qualifying under Criteria VII (Stage IV) would be shifted from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE)
  • ASM framework operates in conjunction with all other prevailing surveillance measures

Compliance Requirements

  • NSE members must monitor the ASM framework for future updates
  • When securities are listed under ASM, appropriate margin requirements must be applied
  • Members should refer to the surveillance department for queries at surveillance@nse.co.in
  • Market participants should not construe ASM shortlisting as adverse action against companies

Important Dates

  • November 27, 2025: Circular issue date
  • November 28, 2025: Effective date for ASM framework applicability (no securities listed)
  • December 01, 2025: Date from which open positions would be subject to 100% margin (if securities were listed)
  • December 02, 2025: Effective date for 100% margin on new positions and T2T shift (if securities were listed)

Impact Assessment

Current Impact: None. With all annexure entries showing ‘Nil’, no securities are currently under any stage of the Long-Term ASM framework, resulting in zero immediate market impact.

Framework Impact (When Activated): When securities are shortlisted in future:

  • Stage I-III: 100% margin requirement significantly increases capital requirements for traders
  • Stage IV: Shift to Trade-for-Trade segment eliminates intraday trading, reducing liquidity
  • Investor Behavior: ASM listing may create negative sentiment despite being surveillance-related
  • Broker Operations: Requires enhanced monitoring and margin collection systems

The circular serves as a routine update maintaining the ASM surveillance framework without current operational impact.

Impact Justification

While the circular outlines ASM framework provisions, all annexures show 'Nil' entries with no securities currently affected, resulting in no immediate market impact.