Description

NSE circular regarding securities being placed under Short-Term Additional Surveillance Measure (ST-ASM) Stage I with increased margin requirements of 50% effective December 30, 2025.

Summary

NSE has announced the inclusion of four securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I framework effective December 29-30, 2025. The affected securities will be subject to increased margin requirements of 50% or existing margin, whichever is higher (capped at 100%). This surveillance action is part of NSE’s ongoing market monitoring framework and should not be construed as adverse action against the companies.

Key Points

  • Four securities placed under ST-ASM Stage I: Essen Speciality Films Limited (ESFL), Modi Rubber Limited (MODIRUBBER), Sasken Technologies Limited (SASKEN), and Shri Kanha Stainless Limited (SHRIKANHA)
  • Margin rate of 50% or existing margin (whichever is higher) will apply, with maximum cap at 100%
  • New margin rates effective on all open positions as on December 29, 2025 and new positions from December 30, 2025
  • No securities listed under ST-ASM Stage II
  • No securities moving between stages
  • Two securities excluded from ASM framework: Aatmaj Healthcare Limited (AATMAJ) and one other partially listed (ASAHISO)
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Circular reference number: 1004/2025, Download Ref No: NSE/SURV/72017

Regulatory Changes

This circular is a continuation of the existing Additional Surveillance Measure framework established through previous circulars (NSE/SURV/39265 dated October 27, 2018, NSE/SURV/46557 dated December 04, 2020, NSE/SURV/52144 dated April 28, 2022, NSE/SURV/58558 dated September 25, 2023, and NSE/SURV/64066 dated September 20, 2024). No new regulatory framework is introduced; this is routine application of existing surveillance criteria.

Compliance Requirements

  • Trading members must ensure margin of 50% or existing margin (whichever is higher) is collected on the four shortlisted securities
  • Maximum margin rate capped at 100%
  • Margin requirements apply to all open positions as on December 29, 2025
  • New positions created from December 30, 2025 onwards will be subject to the enhanced margin
  • Market participants must continue to comply with all other existing surveillance measures simultaneously
  • Price band adjustments may occur when securities exit the framework, subject to no other surveillance measures being applicable

Important Dates

  • December 26, 2025: Circular issued
  • December 29, 2025: Enhanced margins apply to all open positions; securities formally enter ST-ASM Stage I
  • December 30, 2025: Enhanced margins apply to all new positions created from this date

Impact Assessment

Market Impact: The inclusion of four securities under ST-ASM Stage I will increase trading costs and reduce leverage available to traders in these stocks. The 50% minimum margin requirement (doubling from typical 25% margins) will reduce speculative activity and potentially lower trading volumes in affected securities.

Operational Impact: Brokers and trading members must adjust their margin collection systems and communicate requirements to clients holding positions in ESFL, MODIRUBBER, SASKEN, and SHRIKANHA. Clients with existing positions may face margin calls if current margin held is below 50%.

Investor Impact: Investors holding positions in these securities will need to maintain higher margins, affecting capital efficiency. However, this is a surveillance measure for market stability and not indicative of fundamental issues with the companies.

Note: NSE explicitly clarifies that shortlisting under ASM is purely for market surveillance purposes and should not be interpreted as adverse action against the concerned companies. For queries, members can contact surveillance@nse.co.in or refer to FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure.

Impact Justification

Affects four securities with enhanced margin requirements of 50% minimum, impacting trading positions and costs for these stocks. Surveillance measure is routine market monitoring, not punitive action.