Description

NSE implements Short-Term Additional Surveillance Measure (ST-ASM) on select securities with increased margin requirements effective December 4, 2025.

Summary

NSE has issued a circular regarding the applicability of Short-Term Additional Surveillance Measure (ST-ASM) effective December 3, 2025. The circular identifies securities that have satisfied criteria for inclusion under ST-ASM Stage I, requiring increased margin requirements of 50% or existing margin (whichever is higher), subject to a maximum of 100%. The surveillance measure applies to all open positions as on December 3, 2025, and new positions created from December 4, 2025.

Key Points

  • Savy Infra and Logistics Limited (SAVY) included in ST-ASM Stage I
  • Mangalam Drugs And Organics Limited (MANGALAM) moved from Stage I to Stage II
  • Margin requirement: 50% or existing margin, whichever is higher, capped at 100%
  • Six securities excluded from ASM Framework: ARCIIL, DYNAMIC, GSLSU, OWAIS, REFRACTORY, SPECTRUM
  • ASM framework operates in conjunction with other surveillance measures
  • Shortlisting is purely for market surveillance, not adverse action against companies

Regulatory Changes

The Exchange has updated the Short-Term Additional Surveillance Measure framework to include new securities and modify the status of existing ones. The surveillance action includes:

  • ST-ASM Stage I: Applicable margin rate of 50% or existing margin, whichever is higher, with maximum capped at 100%
  • Stage Movement: Securities can be moved between Stage I and Stage II based on market surveillance criteria
  • Exclusions: Securities meeting compliance criteria are removed from the ASM framework

This circular references previous circulars: NSE/SURV/39265 (October 27, 2018), NSE/SURV/46557 (December 4, 2020), NSE/SURV/52144 (April 28, 2022), NSE/SURV/58558 (September 25, 2023), and NSE/SURV/64066 (September 20, 2024).

Compliance Requirements

For Trading Members:

  • Collect and maintain margins of 50% or existing margin (whichever is higher) on affected securities
  • Apply increased margins to all open positions as on December 3, 2025
  • Apply increased margins to all new positions created from December 4, 2025
  • Ensure margin requirements are capped at maximum 100%
  • Comply with all other pre-existing surveillance measures

For Investors:

  • Be prepared for significantly higher margin requirements when trading in listed securities
  • Maintain adequate funds to meet margin obligations
  • Monitor ASM status of securities regularly

Important Dates

  • December 2, 2025: Circular issuance date
  • December 3, 2025: Securities included/moved/excluded from ST-ASM framework
  • December 3, 2025: Increased margins applicable on all open positions
  • December 4, 2025: Increased margins applicable on new positions created from this date onwards

Impact Assessment

Trading Impact:

  • Significantly higher margin requirements will reduce leverage and may impact trading volumes in affected securities
  • SAVY will face 50% minimum margin requirement (up to 100% maximum)
  • MANGALAM faces even stricter Stage II surveillance measures

Market Impact:

  • Enhanced surveillance measures aim to curb excessive speculation and volatility
  • Six securities (ARCIIL, DYNAMIC, GSLSU, OWAIS, REFRACTORY, SPECTRUM) will see relief from ASM restrictions, potentially improving liquidity
  • Overall framework maintains market integrity while allowing normal trading for compliant securities

Investor Impact:

  • Investors holding positions in SAVY and MANGALAM must arrange for additional margins immediately
  • Failure to meet margin requirements may result in position squaring-off
  • Reduced leverage may limit profit potential but also reduces risk exposure

Clarifications: For queries, members can contact NSE at surveillance@nse.co.in. Additional information available at: https://www.nseindia.com/regulations/additional-surveillance-measure

Impact Justification

High margin requirements (50% or existing margin, whichever is higher, capped at 100%) being imposed on specific securities due to surveillance concerns, significantly affecting trading in these stocks