Description
NSE implements Long-Term Additional Surveillance Measure (ASM) for SEL Manufacturing Company Limited with 100% margin requirement effective December 26, 2025.
Summary
NSE has included SEL Manufacturing Company Limited (SELMC) under the Long-Term Additional Surveillance Measure (ASM) Framework Stage-I effective December 23, 2025. The security will be subject to 100% margin requirements on all open positions as of December 24, 2025 and new positions from December 26, 2025 onwards. This surveillance action is implemented as per the framework outlined in previous NSE circulars and is purely a market surveillance measure.
Key Points
- SEL Manufacturing Company Limited (SELMC, ISIN: INE105I01020) included in Long-Term ASM Framework Stage-I
- 100% margin requirement applicable on all positions
- No securities currently shortlisted for Stage-IV or movement between stages
- ASM framework operates in conjunction with all other prevailing surveillance measures
- This action is purely market surveillance-related and not an adverse action against the company
Regulatory Changes
The circular implements Long-Term Additional Surveillance Measure provisions for securities meeting specific surveillance criteria. Securities qualifying under Criteria VII (Scrips shifted to Stage IV) would be shifted from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE), though no securities currently meet this criterion.
Compliance Requirements
- Trading members must ensure 100% margin on all open positions in SELMC as of December 24, 2025
- 100% margin must be maintained on all new positions in SELMC created from December 26, 2025 onwards
- Members should refer to NSE’s FAQ on Additional Surveillance Measure at https://www.nseindia.com/regulations/additional-surveillance-measure
- For queries, members may contact surveillance@nse.co.in
Important Dates
- December 22, 2025: Circular issue date
- December 23, 2025: Effective date for security inclusion in Long-Term ASM Stage-I
- December 24, 2025: Cut-off date for existing open positions subject to 100% margin
- December 26, 2025: 100% margin requirement becomes applicable on all positions
Impact Assessment
Market Impact: The 100% margin requirement effectively eliminates leverage for trading in SELMC, which will significantly reduce speculative activity and trading volumes. This measure aims to curb excessive volatility and protect investor interests.
Operational Impact: Traders holding positions in SELMC must arrange for full funding by December 26, 2025, or face potential position squaring. Brokers need to update margin systems and communicate requirements to clients.
Liquidity Impact: The surveillance measure is expected to reduce liquidity in the affected security as margin-constrained traders exit positions and new trading activity decreases due to higher capital requirements.
Impact Justification
100% margin requirement significantly impacts trading in affected security, restricting leverage and liquidity