Description

NSE places securities under Short-Term Additional Surveillance Measure with increased margin requirements of 50% or existing margin (whichever is higher) effective December 26, 2025.

Summary

NSE has issued surveillance measures under the Short-Term Additional Surveillance Measure (ST-ASM) framework, placing certain securities under enhanced monitoring with increased margin requirements. The circular specifies securities moving into ST-ASM Stage I and Stage II, securities transitioning between stages, and securities being excluded from the ASM framework. The applicable margin rate will be 50% or existing margin (whichever is higher), capped at maximum 100%, effective December 26, 2025.

Key Points

  • Three securities shortlisted for ST-ASM Stage I: KDL (Kore Digital Limited), NIRAJ (Niraj Cement Structurals Limited), and OSWALSEEDS (ShreeOswal Seeds And Chemicals Limited)
  • One security moving from ST-ASM Stage I to Stage II: CEDAAR (Cedaar Textile Limited)
  • Three securities excluded from ASM framework: RICOAUTO (Rico Auto Industries Limited), S&SPOWER (S&S Power Switchgears Limited), and VLSFINANCE (VLS Finance Limited)
  • Margin requirements set at 50% or existing margin (whichever is higher), with maximum cap of 100%
  • 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 continues the implementation of the Additional Surveillance Measure (ASM) framework previously established through circulars dated October 27, 2018, December 04, 2020, April 28, 2022, September 25, 2023, and September 20, 2024. The ST-ASM framework provides enhanced surveillance on securities exhibiting concerning market behavior through staged intervention.

Compliance Requirements

  • Market participants must maintain applicable margin of 50% or existing margin (whichever is higher) on all open positions as on December 24, 2025
  • Same margin requirements apply to new positions created from December 26, 2025 onwards
  • Maximum margin rate capped at 100%
  • Members should refer to NSE FAQs on Additional Surveillance Measure at https://www.nseindia.com/regulations/additional-surveillance-measure
  • Queries may be directed to surveillance@nse.co.in

Important Dates

  • Circular Date: December 23, 2025
  • Effective Date: December 26, 2025 (margin requirements applicable from this date)
  • Cut-off Date: December 24, 2025 (for existing open positions)

Impact Assessment

Trading Impact: Traders holding positions in the affected securities will face significantly higher margin requirements, which may force position closures or require additional capital deployment. The 50% minimum margin requirement represents a substantial increase from normal margin levels.

Liquidity Impact: Securities under ST-ASM typically experience reduced trading activity due to higher capital requirements, potentially leading to wider bid-ask spreads and lower volumes.

Risk Mitigation: The surveillance measure aims to curb excessive speculation and price manipulation in securities showing abnormal market behavior, protecting overall market integrity.

Positive Development: Three securities (RICOAUTO, S&SPOWER, VLSFINANCE) are being excluded from ASM framework, indicating improved market behavior and reduced surveillance concerns for these stocks.

Impact Justification

Increased margin requirements significantly impact traders holding positions in affected securities; affects multiple stocks with staged surveillance implementation