Description

NSE places four securities under ST-ASM Stage I with 50% margin requirement, moves one security from Stage II to Stage I, and excludes two securities from ASM framework effective December 18-19, 2025.

Summary

NSE has issued surveillance measures under the Short-Term Additional Surveillance Measure (ST-ASM) framework, placing four securities under Stage I with enhanced margin requirements of 50% or existing margin (whichever is higher, capped at 100%). One security moves from Stage II to Stage I, while two securities are excluded from the ASM framework entirely. These measures take effect from December 18-19, 2025.

Key Points

  • Four securities added to ST-ASM Stage I: Asahi Songwon Colors Limited (ASAHISONG), Dolphin Offshore Enterprises (India) Limited (DOLPHIN), Shree Rama Multi-Tech Limited (SHREERAMA), and Tainwala Chemical and Plastic (I) Limited (TAINWALCHM)
  • Applicable margin rate: 50% or existing margin, whichever is higher, capped at maximum 100%
  • No securities newly placed in ST-ASM Stage II
  • No securities moved from Stage I to Stage II
  • Nirman Agri Genetics Limited (NIRMAN) moved from Stage II to Stage I
  • Two securities excluded from ASM framework: Indian Phosphate Limited (IPHL) and Kaynes Technology India Limited (KAYNES)
  • 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 continues the implementation of the Additional Surveillance Measure (ASM) framework established through previous circulars dated October 27, 2018, December 04, 2020, April 28, 2022, September 25, 2023, and September 20, 2024. The ST-ASM framework applies temporary enhanced surveillance measures to securities meeting specific criteria.

Compliance Requirements

  • All NSE members must apply 50% margin or existing margin (whichever is higher) on the listed securities, with maximum margin capped at 100%
  • Enhanced margin applicable on all open positions as on December 18, 2025
  • Enhanced margin applicable on all new positions created from December 19, 2025 onwards
  • Members must comply with margin requirements for securities under ST-ASM Stage I effective December 19, 2025
  • Market participants must monitor the ASM framework in conjunction with other surveillance measures imposed by the Exchange

Important Dates

  • December 17, 2025: Circular issue date
  • December 18, 2025: Effective date for ASM framework changes; margin requirements apply to all open positions as of this date
  • December 19, 2025: Enhanced margin rate of 50% becomes applicable on new positions created from this date

Impact Assessment

Trading Impact: The 50% margin requirement significantly increases capital requirements for trading these securities, potentially reducing trading volumes and liquidity. Traders holding positions in ASAHISONG, DOLPHIN, SHREERAMA, and TAINWALCHM will face immediate margin calls.

Market Participants: Brokers and traders must ensure adequate margins are collected and maintained. Failure to comply may result in position squaring or penalties.

Affected Securities:

  • Stage I additions: Four securities face increased scrutiny and trading restrictions
  • Stage movement: NIRMAN experiences relaxation by moving from Stage II to Stage I (less restrictive)
  • Exclusions: IPHL and KAYNES benefit from removal of surveillance measures, allowing normal trading

Investor Sentiment: Placement under ST-ASM may negatively impact investor confidence in the four newly listed securities, though NSE clarifies this is not an adverse action against the companies.

Liquidity: Higher margin requirements typically reduce trading activity and liquidity in affected securities, potentially increasing bid-ask spreads and price volatility.

Impact Justification

Significant margin increase to 50% for affected securities impacts trading activity and liquidity; affects multiple securities with immediate effect