Description

NSE updates ASM framework effective December 1, 2025, with securities moving across stages and exclusions from the framework.

Summary

NSE has issued updates to the Additional Surveillance Measure (ASM) framework effective December 1, 2025. The circular details securities being added to Long-Term ASM Stage I, securities moving between various ASM stages, and seven securities being excluded from the ASM framework. Key changes include Magellanic Cloud Limited moving from Short-Term ASM to Long-Term ASM Stage I, and Flexituff Ventures International Limited advancing from Stage I to Stage II.

Key Points

  • Magellanic Cloud Limited (MCLOUD) added to Long-Term ASM Framework Stage I (moved from ST-ASM)
  • Flexituff Ventures International Limited (FLEXITUFF) moving from Stage I to Stage II
  • 7 securities being excluded from ASM framework
  • No securities shortlisted for Stage IV or moving to higher stages beyond Stage II
  • Changes effective from December 1, 2025
  • Securities in Stage IV are shifted to Trade for Trade (Series: BE) on T+3 basis

Regulatory Changes

The Long-Term ASM framework continues to operate with four stages of surveillance measures. Securities meeting specific criteria move between stages based on their trading patterns and volatility. Stage IV securities are subject to Trade for Trade settlement in Series BE on a T+3 basis as per Criteria VII.

Compliance Requirements

For Market Participants:

  • Adjust trading strategies for securities moved to higher ASM stages
  • Note enhanced margin requirements applicable to ASM securities
  • Comply with Trade for Trade settlement requirements for Stage IV securities

For Investors:

  • Be aware of increased surveillance on listed securities
  • Understand restrictions and additional requirements for trading ASM securities

Securities Moving Between Stages

New Entries to Long-Term ASM Stage I:

  • Magellanic Cloud Limited (MCLOUD) - INE613C01026 (from ST-ASM)

Stage I to Stage II:

  • Flexituff Ventures International Limited (FLEXITUFF) - INE060J01017

Excluded from ASM Framework:

  1. BIL VYAPAR LIMITED (BILVYAPAR) - INE071A01013 (moved to IBC framework)
  2. Net Avenue Technologies Limited (CBAZAAR) - INE518X01015 (moved to ESM framework)
  3. Hubtown Limited (HUBTOWN) - INE703H01016
  4. InfoBeans Technologies Limited (INFOBEAN) - INE344S01016
  5. Modern Threads (India) Limited (MODTHREAD) - INE794W01014
  6. Trident Techlabs Limited (TECHLABS) - INE0QD201012
  7. Zuari Agro Chemicals Limited (ZUARI) - INE840M01016

Important Dates

  • Effective Date: December 1, 2025 - All ASM stage changes and exclusions take effect
  • T+3 basis: Applicable for Stage IV securities moved to Trade for Trade settlement

Impact Assessment

Market Impact: Medium - Affects liquidity and trading patterns for 9 securities across different movements. The exclusion of 7 securities reduces surveillance restrictions for those stocks.

Operational Impact: Market participants need to update their systems and risk management frameworks to reflect the new ASM classifications. Enhanced margins and trading restrictions apply to securities in higher stages.

Investor Impact: Investors holding or trading affected securities should note the changed surveillance status, which may impact liquidity, margin requirements, and settlement mechanisms.

Impact Justification

Affects trading modalities for multiple securities under surveillance framework with stage movements and exclusions