Description

NSE announces movement of Kody Technolab Limited from Long-Term ASM Stage-I to Stage-II, with 100% margin requirement effective December 04, 2025.

Summary

NSE has issued updates to the Long-Term Additional Surveillance Measure (ASM) framework. One security, Kody Technolab Limited (KODYTECH, ISIN: INE0Q7P01013), has been moved from Stage-I to Stage-II of the Long-Term ASM framework effective December 02, 2025. This will result in a 100% margin requirement on all positions effective December 04, 2025. No securities have been newly added to Stage-I or Stage-IV, and no securities are moving to Stage-III or Stage-IV from lower stages.

Key Points

  • Kody Technolab Limited (KODYTECH) moves from Long-Term ASM Stage-I to Stage-II
  • 100% margin requirement will apply to this security
  • Margin applies to all open positions as on December 03, 2025 and new positions from December 04, 2025 onwards
  • No securities newly added to Stage-I or Stage-IV
  • No securities moving to Stage-III or being shifted to Trade-for-Trade segment
  • ASM framework operates in conjunction with all other surveillance measures
  • Circular references previous circulars dating back to October 27, 2018

Regulatory Changes

Enhanced surveillance under Long-Term ASM framework for Kody Technolab Limited, escalating from Stage-I to Stage-II. This represents a progression in the surveillance intensity for the security based on predefined criteria established in earlier circulars.

Compliance Requirements

  • Trading members must ensure 100% margin on Kody Technolab Limited effective December 04, 2025
  • Margin requirement applies to:
    • All open positions as on December 03, 2025
    • All new positions created from December 04, 2025 onwards
  • Members should monitor and comply with the enhanced surveillance requirements
  • Risk management systems must be updated to reflect the new margin requirements

Important Dates

  • December 01, 2025: Circular issuance date
  • December 02, 2025: Effective date for stage movement (Kody Technolab to Stage-II)
  • December 03, 2025: Last date for existing open positions before new margin applies
  • December 04, 2025: 100% margin requirement becomes applicable

Impact Assessment

Market Impact: Limited market-wide impact as only one security is affected. However, for Kody Technolab Limited specifically, the impact is significant.

Trading Impact: The 100% margin requirement will substantially increase capital requirements for traders holding or taking positions in KODYTECH. This typically results in reduced liquidity and trading volumes for the affected security.

Investor Impact: Existing position holders will need to arrange for additional margins, while potential new investors will face higher capital requirements. This may lead to reduced participation in the stock.

Operational Impact: Brokers and trading members need to update their risk management systems and inform clients about the enhanced margin requirements before the December 04, 2025 deadline.

Note: NSE clarifies that ASM shortlisting is purely for market surveillance purposes and should not be construed as adverse action against the company.

Impact Justification

Affects one security (Kody Technolab) with enhanced surveillance and 100% margin requirement. Medium impact as it restricts trading conditions for the specific stock.