Description

NSE introduces Short-Term Additional Surveillance Measure (ST-ASM) Stage I for Sheetal Cool Products Limited with 50% margin requirement effective December 15, 2025. Two securities excluded from ASM framework.

Summary

The National Stock Exchange has issued a surveillance circular implementing Short-Term Additional Surveillance Measure (ST-ASM) Stage I for one security - Sheetal Cool Products Limited (SCPL). The measure requires an applicable margin rate of 50% or existing margin (whichever is higher), capped at 100%, effective December 15, 2025. Additionally, two securities - De Neers Tools Limited (DENEERS) and Holmarc Opto-Mechatronics Limited (HOLMARC) - are being excluded from the ASM framework.

Key Points

  • One security shortlisted for ST-ASM Stage I: Sheetal Cool Products Limited (SCPL, ISIN: INE501Y01019)
  • Margin requirement of 50% or existing margin (whichever is higher), capped at 100%
  • No securities shortlisted for ST-ASM Stage II
  • No securities moving between ST-ASM stages
  • Two securities excluded from ASM framework: DENEERS and HOLMARC
  • ASM framework operates in conjunction with all other surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the company

Regulatory Changes

This circular builds upon previous NSE circulars on Additional Surveillance Measure (ASM) framework:

  • NSE/SURV/39265 dated October 27, 2018
  • NSE/SURV/46557 dated December 04, 2020
  • NSE/SURV/52144 dated April 28, 2022
  • NSE/SURV/58558 dated September 25, 2023
  • NSE/SURV/64066 dated September 20, 2024

The Short-Term Additional Surveillance Measure (ST-ASM) framework is applied to securities meeting specific surveillance criteria.

Compliance Requirements

For Securities in ST-ASM Stage I (SCPL):

  • Applicable margin rate: 50% or existing margin, whichever is higher
  • Maximum margin rate capped at 100%
  • Margins applicable on:
    • All open positions as on December 12, 2025
    • New positions created from December 15, 2025

For Market Participants:

Important Dates

  • December 11, 2025: Circular issue date
  • December 12, 2025: Securities shortlisted in ST-ASM Stage I effective date; reference date for open positions
  • December 15, 2025: Enhanced margin requirements become applicable on open positions and new positions

Impact Assessment

Market Impact:

  • Limited market-wide impact as only one security enters ST-ASM Stage I
  • Two securities being excluded from ASM framework may see relaxed trading conditions
  • Enhanced margin requirements may reduce speculative activity in SCPL

Trading Impact:

  • Traders holding positions in SCPL will face increased margin requirements (minimum 50%)
  • Higher margins may reduce liquidity and trading volumes in the affected security
  • Potential reduction in leveraged positions

Operational Impact:

  • Brokers and members must ensure adequate margin collection for SCPL positions
  • Risk management systems need to be updated to reflect new margin requirements
  • Position monitoring required for compliance with enhanced surveillance measures

Positive Developments:

  • Exclusion of DENEERS and HOLMARC from ASM framework indicates improved market conditions for these securities
  • Normal trading conditions restored for excluded securities

Impact Justification

Affects one security with enhanced margin requirements under ST-ASM Stage I. Two securities removed from ASM framework. Standard surveillance action with limited market-wide impact.