Description

NSE introduces Additional Surveillance Measure (ASM) for select securities with 100% margin requirements and segment shifts effective December 10, 2025.

Summary

NSE has implemented Additional Surveillance Measure (ASM) for three securities under Long-Term ASM Framework Stage-I effective December 8, 2025. The circular mandates 100% margin requirements on all positions and provides for potential segment shifts for Stage IV securities from Rolling Settlement to Trade-for-Trade segment.

Key Points

  • Three securities shortlisted under Long-Term ASM Framework Stage-I: Rajdarshan Industries Limited (ARENTERP), Nectar Lifesciences Limited (NECLIFE), and ORTIN GLOBAL LIMITED (ORTINGLOBE)
  • 100% margin applicable on all open positions as on December 9, 2025 and new positions from December 10, 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)
  • No securities currently listed under Stage IV or moving between stages
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance purposes and not an adverse action against companies

Regulatory Changes

Enhanced surveillance measures implemented through Long-Term ASM framework:

  • Introduction of 100% margin requirements for shortlisted securities
  • Framework allows for progressive stage-wise escalation (Stage I to Stage IV)
  • Securities at Stage IV face segment shift from Rolling Settlement to Trade-for-Trade, significantly restricting intraday trading
  • Price band reinstatement provisions when securities exit the framework

Compliance Requirements

  • All NSE members must apply 100% margin rate effective December 10, 2025
  • Margin applicable to all open positions as on December 9, 2025
  • Margin applicable to all new positions created from December 10, 2025 onwards
  • Members must comply with ASM measures in addition to all other existing surveillance requirements
  • Members should monitor shortlisted securities for stage progression

Important Dates

  • December 5, 2025: Circular issued (Circular Ref. No: 941/2025)
  • December 8, 2025: Securities shortlisted under Long-Term ASM Framework Stage-I
  • December 9, 2025: Last date for existing positions before new margin requirements
  • December 10, 2025: 100% margin requirement becomes effective; Stage IV securities (if any) shift to Trade-for-Trade segment

Impact Assessment

Market Impact:

  • Significant reduction in trading activity expected for ARENTERP, NECLIFE, and ORTINGLOBE due to 100% margin requirements
  • Elimination of leverage for these securities, potentially reducing speculative trading
  • Increased capital requirements for traders holding positions in affected securities

Operational Impact:

  • Brokers must ensure adequate margin collection from clients
  • Enhanced monitoring required for position limits and margin compliance
  • Potential forced liquidation of positions if clients cannot meet 100% margin requirements

Liquidity Impact:

  • Expected decrease in liquidity for shortlisted securities
  • Wider bid-ask spreads likely due to reduced trading volumes
  • Stage IV progression would further restrict liquidity through Trade-for-Trade segment placement

Reference Information:

Impact Justification

High impact due to 100% margin requirement and potential shift to Trade-for-Trade segment for Stage IV securities, significantly affecting liquidity and trading in these stocks