Description

NSE circular regarding securities movement under Long-Term Additional Surveillance Measure (ASM) framework with 100% margin requirement and shift to Trade-for-Trade segment for certain securities.

Summary

NSE has issued a circular regarding the applicability of Additional Surveillance Measure (ASM) framework. One security, Globesecure Technologies Limited (GSTL), has been identified to move from Long-Term ASM Framework Stage-I to Stage-II effective December 03, 2025. The circular mandates 100% margin requirement on all positions and outlines potential shifts from Rolling Settlement to Trade-for-Trade segment for securities reaching Stage-IV.

Key Points

  • Applicable margin rate shall be 100% effective December 05, 2025 on all open positions as on December 04, 2025 and new positions created from December 05, 2025 onwards
  • Securities qualifying under Criteria VII (Stage-IV) will be shifted from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE) effective December 05, 2025
  • One security identified: Globesecure Technologies Limited (Symbol: GSTL, ISIN: INE00WS01056) moving from Stage-I to Stage-II
  • No securities listed for Stage-I, Stage-IV, or other stage transitions in current circular
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ASM is purely for market surveillance and not an adverse action against the company

Regulatory Changes

This circular continues the implementation of the Long-Term Additional Surveillance Measure (ASM) framework previously introduced through 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 framework aims to enhance market surveillance by imposing stricter margin requirements and trading restrictions on securities meeting specific criteria.

Compliance Requirements

  • Market participants must ensure 100% margin is maintained on all open positions in affected securities as on December 04, 2025
  • 100% margin must be applied to all new positions created from December 05, 2025 onwards in Long-Term ASM securities
  • Members must note that securities moved to Stage-IV will be available only in Trade-for-Trade (BE series) segment, restricting intraday trading
  • Market participants should monitor the ASM framework alongside other surveillance measures imposed by exchanges
  • For queries, members may contact NSE at surveillance@nse.co.in

Important Dates

  • December 02, 2025: Circular issuance date
  • December 03, 2025: Effective date for GSTL movement from Stage-I to Stage-II
  • December 04, 2025: Last day for existing positions under previous margin requirements
  • December 05, 2025: 100% margin requirement becomes applicable on all open positions and new positions; Stage-IV securities (if any) shift to Trade-for-Trade segment

Impact Assessment

Market Impact: The 100% margin requirement significantly increases capital requirements for traders holding positions in Long-Term ASM securities, potentially reducing speculative activity and volatility. For GSTL specifically, the move to Stage-II intensifies surveillance scrutiny.

Liquidity Impact: High margin requirements typically reduce trading volumes and liquidity as fewer participants can afford to maintain positions. The potential shift to Trade-for-Trade segment (for Stage-IV securities) eliminates intraday trading opportunities, further reducing liquidity.

Operational Impact: Trading members must adjust their risk management systems to enforce 100% margin requirements and monitor client positions in ASM securities. The shift from EQ to BE series for Stage-IV securities requires operational changes in trading systems.

Investor Impact: Retail and institutional investors holding GSTL and other Long-Term ASM securities will face higher margin requirements, affecting position sizing and trading strategies. The surveillance framework serves as a protective measure but may limit trading flexibility.

Impact Justification

High margin requirements (100%) and potential shift to Trade-for-Trade segment significantly impact trading activity and liquidity in affected securities