Description

NSE circular regarding securities qualifying for Long Term Additional Surveillance Measure with 100% margin requirements effective December 17, 2025.

Summary

NSE has issued a circular regarding the applicability of Additional Surveillance Measure (ASM) framework. This circular updates the list of securities qualifying for Long Term ASM, though all annexures show ‘Nil’ entries across all stages for the current period. The circular reinforces existing ASM provisions including 100% margin requirements and potential shift to Trade-for-Trade segment for qualifying securities.

Key Points

  • Circular references previous ASM circulars from October 2018 to September 2024
  • No securities currently shortlisted under Long Term ASM Framework Stages I, II, III, or IV
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Price bands of securities moving out of ASM will be reinstated to pre-ASM levels
  • Shortlisting under ASM is purely for market surveillance and not an adverse action against companies

Regulatory Changes

No new regulatory changes introduced. This circular reaffirms existing Long Term ASM provisions:

  • 100% margin applicable on all open positions and new positions for securities under Long Term ASM
  • Securities qualifying under Criteria VII (Stage IV) to be shifted from Rolling Settlement (EQ series) to Trade-for-Trade segment (BE series)

Compliance Requirements

  • Members: Note the securities listed in annexure (currently nil) qualifying for Long Term ASM
  • Market Participants: Ensure compliance with 100% margin requirements when applicable
  • Effective Date for Margins: December 17, 2025 (applicable on open positions as of December 16, 2025 and new positions from December 17, 2025 onwards)
  • Members can refer to FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure for additional information
  • Queries may be directed to surveillance@nse.co.in

Important Dates

  • Circular Date: December 12, 2025
  • Effective Date: December 17, 2025 (for 100% margin requirements and Trade-for-Trade shift if applicable)
  • Margin Applicability: On all open positions as on December 16, 2025 and new positions from December 17, 2025

Impact Assessment

Current Impact: Minimal, as no securities are currently listed in any ASM stage according to the annexure.

Potential Impact: When securities are shortlisted under Long Term ASM:

  • Trading Impact: 100% margin requirement significantly increases capital requirements for positions in affected securities
  • Liquidity Impact: Stage IV securities moved to Trade-for-Trade segment will have reduced liquidity
  • Market Participants: Traders and investors in ASM securities face higher margin obligations
  • Price Discovery: Trade-for-Trade mechanism may impact price discovery for Stage IV securities

Framework Purpose: The ASM framework is designed to alert market participants about securities exhibiting unusual price movements or volatility patterns, serving as a preventive surveillance measure rather than punitive action.

Impact Justification

Routine surveillance circular with no securities currently listed in any ASM stage. Framework update maintains existing surveillance measures.