Description

NSE updates the list of securities under the Additional Surveillance Measure (ASM) Framework with one security added to Long-Term ASM Stage-I, one security moving from Stage-II to Stage-I, and five securities being excluded from the framework.

Summary

NSE has issued updates to the Additional Surveillance Measure (ASM) Framework effective December 22, 2025. The Peria Karamalai Tea & Produce Company Limited (PKTEA) has been newly shortlisted in Long-Term ASM Framework Stage-I. KIOCL Limited is being moved from Stage-II to Stage-I. Five securities - Madhucon Projects Limited, MIC Electronics Limited, Moschip Technologies Limited, Nagreeka Exports Limited, and NK Industries Limited - are being excluded from the ASM Framework.

Key Points

  • One security (PKTEA) added to Long-Term ASM Framework Stage-I
  • One security (KIOCL) moved from Stage-II to Stage-I (less restrictive)
  • Five securities removed from ASM Framework entirely
  • No securities moving to or from higher stages (Stage-III or Stage-IV)
  • No securities being shifted to Trade for Trade basis under this circular
  • Changes effective from December 22, 2025

Regulatory Changes

The ASM Framework continues to apply staged surveillance measures based on predefined criteria. Securities in Stage-I face the least restrictive measures within the ASM framework, while Stage-IV involves the most stringent measures including potential shift to Trade for Trade (Series: BE) on T+3 basis. This circular shows no escalations to higher stages.

Compliance Requirements

Market participants trading in affected securities must be aware of:

  • Enhanced surveillance applicable to PKTEA (newly in Stage-I)
  • Reduced surveillance measures for KIOCL (moving from Stage-II to Stage-I)
  • Normal trading resumption for excluded securities (MADHUCON, MICEL, MOSCHIP, NAGREEKEXP, NKIND)
  • Monitoring of consolidated ASM list for ongoing compliance

Important Dates

  • December 22, 2025: Effective date for all ASM Framework changes
    • PKTEA enters Long-Term ASM Stage-I
    • KIOCL moves from Stage-II to Stage-I
    • Five securities excluded from ASM Framework

Impact Assessment

Market Impact: Limited impact as only one security is newly entering ASM surveillance and one is moving to a less restrictive stage. The exclusion of five securities is positive for those stocks as they return to normal trading status.

Trading Impact: PKTEA will face enhanced surveillance measures typical of ASM Stage-I. KIOCL investors benefit from reduced surveillance as it moves to Stage-I. The five excluded securities (MADHUCON, MICEL, MOSCHIP, NAGREEKEXP, NKIND) will no longer be subject to ASM restrictions.

Liquidity Impact: ASM securities typically experience reduced liquidity due to additional margin requirements and trading restrictions. The exclusion of five securities should improve their liquidity, while PKTEA may see some liquidity constraints under Stage-I measures.

Impact Justification

Routine surveillance measure update affecting limited number of securities. PKTEA enters ASM Stage-I with stricter surveillance, KIOCL moves to less restrictive Stage-I from Stage-II, and five securities are removed from ASM framework entirely.