Description

NSE implements Short-Term Additional Surveillance Measure (ST-ASM) on select securities with 50% margin requirement effective December 3, 2025. Four securities added to Stage I framework.

Summary

NSE has announced the applicability of Short-Term Additional Surveillance Measure (ST-ASM) effective December 2, 2025. Four securities have been shortlisted for inclusion under ST-ASM Stage I framework. The applicable margin rate shall be 50% or existing margin (whichever is higher), capped at maximum 100%, effective December 3, 2025 on all open positions as on December 2, 2025 and new positions created from December 3, 2025. Additionally, six securities are being excluded from the ASM framework.

Key Points

  • Four securities added to ST-ASM Stage I: Identical Brains Studios Limited, Rico Auto Industries Limited, Tunwal E-Motors Limited, and VLS Finance Limited
  • Margin requirement: 50% or existing margin (whichever is higher), capped at 100%
  • No securities in ST-ASM Stage II
  • No securities moving between Stage I and Stage II
  • Six securities excluded from ASM framework: Accretion Pharmaceuticals Limited, Auro Impex & Chemicals Limited, Bikewo Green Tech Limited, South West Pinnacle Exploration Limited, Vdeal System Limited, and Womancart Limited
  • ASM framework operates in conjunction with other surveillance measures
  • Shortlisting is purely for market surveillance purposes and not adverse action against companies

Regulatory Changes

This circular continues the implementation of the Additional Surveillance Measure (ASM) framework introduced through earlier circulars (NSE/SURV/39265 dated October 27, 2018, and subsequent updates). The ST-ASM framework is designed to monitor securities exhibiting specific market characteristics requiring enhanced surveillance.

Compliance Requirements

For Trading Members:

  • Apply 50% margin or existing margin (whichever is higher) on securities listed in ST-ASM Stage I, capped at maximum 100%
  • Ensure margin requirements are applied to all open positions as on December 2, 2025
  • Apply margin requirements to all new positions created from December 3, 2025
  • Monitor and comply with ASM framework provisions alongside other surveillance measures

Securities Under ST-ASM Stage I (Effective December 2, 2025):

  1. IDENTICAL - Identical Brains Studios Limited (INE0TD101011)
  2. RICOAUTO - Rico Auto Industries Limited (INE209B01025)
  3. TUNWAL - Tunwal E-Motors Limited (INE0OXV01027)
  4. VLSFINANCE - VLS Finance Limited (INE709A01018)

Securities Excluded from ASM Framework (Effective December 2, 2025):

  1. ACCPL - Accretion Pharmaceuticals Limited (moved to ESM framework)
  2. AUROIMPEX - Auro Impex & Chemicals Limited
  3. BIKEWO - Bikewo Green Tech Limited
  4. SOUTHWEST - South West Pinnacle Exploration Limited (moved to ESM framework)
  5. VDEAL - Vdeal System Limited
  6. WOMANCART - Womancart Limited

Important Dates

  • December 1, 2025: Circular issued
  • December 2, 2025: ST-ASM measures become applicable
  • December 3, 2025: Enhanced margin requirements effective on all open positions from December 2, 2025 and new positions created from this date

Impact Assessment

Market Impact:

  • Limited scope affecting only four securities in ST-ASM Stage I
  • Positive development for six securities being excluded from ASM framework, potentially improving liquidity
  • Two excluded securities (ACCPL and SOUTHWEST) moved to Enhanced Surveillance Measure (ESM) framework indicating continued monitoring

Trading Impact:

  • Traders holding positions in the four affected securities will face increased margin requirements up to 50-100%
  • Higher margin requirements may reduce speculative trading and volatility in these securities
  • Improved trading conditions for six securities removed from ASM framework

Operational Impact:

  • Brokers must update margin systems to reflect new requirements for affected securities
  • Clients with existing positions in ST-ASM securities may need to maintain additional margins or reduce positions
  • Enhanced monitoring required for compliance with surveillance measures

The surveillance measure is designed to protect market integrity and is not indicative of adverse action against the listed companies. Market participants should refer to NSE’s FAQ on Additional Surveillance Measures for detailed information and direct queries to surveillance@nse.co.in.

Impact Justification

Affects four securities with increased margin requirements from 50% to maximum 100%. Six securities excluded from ASM framework. Limited immediate market-wide impact but significant for affected stock traders.