Description

NSE has placed three securities under Short-Term ASM Stage I with increased margin requirements of 50% or existing margin (whichever is higher, capped at 100%) effective December 17, 2025.

Summary

The National Stock Exchange has placed three securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective December 16-17, 2025. The affected securities are Cedaar Textile Limited, S&S Power Switchgears Limited, and SMC Global Securities Limited. This action imposes increased margin requirements of 50% or existing margin (whichever is higher), capped at a maximum of 100%.

Key Points

  • Three securities shortlisted under ST-ASM Stage I: CEDAAR, S&SPOWER, and SMCGLOBAL
  • Margin requirement: 50% or existing margin (whichever is higher), maximum capped at 100%
  • No securities moved to Stage II or between stages
  • Total Transport Systems Limited (TOTAL) excluded from ASM framework
  • ST-ASM framework operates in conjunction with all other surveillance measures
  • Action is purely for market surveillance purposes and not an adverse action against the companies

Regulatory Changes

The Exchange has implemented Short-Term Additional Surveillance Measure for specific securities based on surveillance criteria. The margin requirement changes apply to both existing open positions and new positions created from December 17, 2025.

Compliance Requirements

For Market Participants:

  • Ensure adequate margins are maintained for positions in affected securities
  • Margin of 50% or existing margin (whichever is higher) must be applied, capped at 100%
  • Compliance required for all open positions as on December 16, 2025
  • Compliance required for all new positions created from December 17, 2025

Affected Securities - ST-ASM Stage I:

  1. Cedaar Textile Limited (CEDAAR) - ISIN: INE11J101017
  2. S&S Power Switchgears Limited (S&SPOWER) - ISIN: INE902B01017
  3. SMC Global Securities Limited (SMCGLOBAL) - ISIN: INE103C01036

Excluded from ASM:

  • Total Transport Systems Limited (TOTAL) - ISIN: INE336X01012

Important Dates

  • December 15, 2025: Circular issued
  • December 16, 2025: Securities shortlisted under ST-ASM Stage I
  • December 17, 2025: Enhanced margin requirements become effective for all open positions and new positions

Impact Assessment

Market Impact:

  • Traders with positions in the three affected securities will face significantly higher margin requirements
  • Potential reduction in trading volumes and liquidity for these securities
  • Increased capital requirements may force position unwinding or limit new position creation

Operational Impact:

  • Brokers must ensure margin collection systems are updated for the affected securities
  • Risk management systems need to reflect the new margin requirements
  • Traders need to arrange additional funds or reduce positions to meet margin calls

Stock-Specific Impact:

  • High impact on CEDAAR, S&SPOWER, and SMCGLOBAL due to 50% minimum margin requirement
  • Positive development for TOTAL as it exits ASM framework, returning to normal margin requirements

Reference Circulars: This circular follows 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).

Contact: For queries, members may write to surveillance@nse.co.in or refer to FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure

Impact Justification

Affects three securities with significantly increased margin requirements (50% minimum), directly impacting trading positions and liquidity. High impact for traders holding these stocks, but limited to specific securities.