Description

NSE announces inclusion of securities under ST-ASM framework with enhanced margin requirements of 50% or existing margin (whichever is higher) effective December 12, 2025.

Summary

The National Stock Exchange has issued a surveillance circular placing specific securities under the Short-Term Additional Surveillance Measure (ST-ASM) framework effective December 12, 2025. Three securities are being added to ST-ASM Stage I, one security is being moved from Stage II to Stage I, and three securities are being excluded from the ASM framework. The measure imposes a minimum margin requirement of 50% or existing margin (whichever is higher), capped at 100%, on all open positions and new positions created from December 12, 2025.

Key Points

  • Three securities added to ST-ASM Stage I: Auri Grow India Limited (AURIGROW), Neelam Linens and Garments (India) Limited (NEELAM), and Pranik Logistics Limited (PRANIK)
  • Mangalam Drugs And Organics Limited (MANGALAM) moved from ST-ASM Stage II to Stage I
  • No securities added to or moved to ST-ASM Stage II
  • Margin requirement: 50% or existing margin, whichever is higher, capped at 100%
  • Three securities excluded from ASM framework: Kesoram Industries Limited (moved to ESM framework), Raghav Productivity Enhancers Limited, and Savy Infra and Logistics Limited
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the company

Regulatory Changes

This circular implements the Short-Term Additional Surveillance Measure (ST-ASM) framework as per previous Exchange Circulars NSE/SURV/39265 (October 27, 2018), NSE/SURV/46557 (December 04, 2020), NSE/SURV/52144 (April 28, 2022), NSE/SURV/58558 (September 25, 2023), and NSE/SURV/64066 (September 20, 2024). The measure enhances surveillance on securities exhibiting abnormal price movements or trading patterns.

Compliance Requirements

  • All NSE members must apply enhanced margin requirements of 50% or existing margin (whichever is higher) on affected securities
  • Margins apply to all open positions as on December 11, 2025 and new positions created from December 12, 2025
  • Maximum margin is capped at 100%
  • Members must ensure compliance with ST-ASM provisions alongside all other existing surveillance measures
  • Members should refer to NSE FAQs on Additional Surveillance Measure at https://www.nseindia.com/regulations/additional-surveillance-measure

Important Dates

  • December 10, 2025: Circular issued
  • December 11, 2025: Securities officially shortlisted under ST-ASM framework; existing open positions subject to enhanced margins
  • December 12, 2025: Enhanced margin requirements become applicable on all open positions and new positions

Impact Assessment

Trading Impact: The 50% minimum margin requirement will significantly reduce leverage available to traders in these securities, potentially decreasing trading volumes and liquidity. Market participants holding positions in AURIGROW, NEELAM, PRANIK, and MANGALAM will face immediate capital requirements.

Investor Impact: Retail and institutional investors will need to ensure adequate margin coverage to maintain existing positions or risk forced liquidation. The measure may deter speculative trading in these securities.

Market Sentiment: Inclusion under ST-ASM may negatively impact investor confidence in the short term, though NSE clarifies this is a surveillance measure and not adverse action against the companies.

Capital Requirements: Brokers and traders must arrange additional capital to meet enhanced margin obligations, affecting overall portfolio management and position sizing strategies.

Impact Justification

High margin requirements (50% minimum) significantly impact trading liquidity and capital requirements for affected securities. Immediate compliance required for all open and new positions.