Description
NSE implements Short-Term Additional Surveillance Measure (ST-ASM) Stage I for three securities with increased margin requirements of 50% or existing margin, whichever is higher.
Summary
NSE has issued a circular implementing Short-Term Additional Surveillance Measure (ST-ASM) Stage I for three securities effective December 16, 2025. The measure requires an applicable margin rate of 50% or existing margin (whichever is higher), capped at maximum 100%, on all open positions and new positions. Additionally, two securities are being excluded from the ASM framework.
Key Points
- Three securities added to ST-ASM Stage I: KSR Footwear Limited, Neptune Petrochemicals Limited, and Suratwwala Business Group Limited
- Margin requirement increases to 50% or existing margin, whichever is higher, with 100% maximum cap
- No securities added to ST-ASM Stage II
- No securities moving between Stage I and Stage II
- Two securities excluded from ASM framework: Gurunanak Agriculture India Limited and Shyam Century Ferrous Limited
- ASM framework operates in conjunction with all other prevailing surveillance measures
- Shortlisting is purely for market surveillance and not an adverse action against companies
Regulatory Changes
This circular references previous circulars on Additional Surveillance Measure (ASM) framework dated October 27, 2018, December 04, 2020, April 28, 2022, September 25, 2023, and September 20, 2024. The ST-ASM framework is applied based on specific criteria being satisfied by the securities.
When securities move out of the framework, their price band will be reinstated to the pre-ASM applicable price band, unless they are part of another surveillance measure.
Compliance Requirements
- Members must apply 50% margin or existing margin (whichever is higher) on affected securities
- Margin applies to all open positions as on December 15, 2025
- Margin applies to all new positions created from December 16, 2025
- Maximum margin capped at 100%
- Members should refer to FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure for more information
- Queries should be directed to surveillance@nse.co.in
Important Dates
- Circular Date: December 12, 2025
- Effective Date: December 16, 2025
- Cut-off for Open Positions: December 15, 2025
Impact Assessment
Securities Added to ST-ASM Stage I (effective December 16, 2025):
- KSR Footwear Limited (Symbol: KSR, ISIN: INE1SPP01016)
- Neptune Petrochemicals Limited (Symbol: NEPTUNE, ISIN: INE156901014)
- Suratwwala Business Group Limited (Symbol: SBGLP, ISIN: INE05ST01028)
Securities Excluded from ASM Framework (effective December 15, 2025):
- Gurunanak Agriculture India Limited (Symbol: GURUNANAK, ISIN: INE1CCX01012)
- Shyam Century Ferrous Limited (Symbol: SHYAMCENT, ISIN: INE979R01011)
Market Impact: The increased margin requirement of minimum 50% for the three securities will significantly increase trading costs and may reduce liquidity in these stocks. Traders and investors holding positions in these securities need to ensure adequate margins before December 16, 2025. The exclusion of two securities from ASM framework is positive, allowing normal margin requirements to resume.
Impact Justification
Significant margin increase to 50% minimum for affected securities impacts trading costs and liquidity. Two securities (GURUNANAK, SHYAMCENT) excluded from ASM framework.