Description

NSE implements Long-Term Additional Surveillance Measures on select securities with 100% margin requirement and potential shift to Trade-for-Trade segment effective December 31, 2025.

Summary

NSE has issued surveillance measures under the Long-Term Additional Surveillance Measure (Long Term-ASM) framework for three securities. Effective December 31, 2025, these securities will be subject to 100% margin requirements on all positions. Securities qualifying under criteria VII (Stage IV) will also be shifted from the Rolling Settlement segment (EQ series) to the Trade-for-Trade segment (BE series). Two securities (AATMAJ and TPHQ) have been moved from Short-Term ASM to Long-Term ASM framework.

Key Points

  • Three securities shortlisted under Long-Term ASM Framework Stage-I: Aatmaj Healthcare Limited (AATMAJ), A and M Jumbo Bags Limited (AMJUMBO), and Teamo Productions HQ Limited (TPHQ)
  • AATMAJ and TPHQ have been moved from ST-ASM to LT-ASM framework
  • 100% margin requirement applicable on all open positions as on December 30, 2025 and new positions from December 31, 2025 onwards
  • No securities listed for Stage-IV (shift to Trade-for-Trade segment) at this time
  • No securities moving between Stage-I to Stage-II or Stage-II to Stage-III
  • 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 references previous NSE circulars on ASM framework dating from October 2018 to September 2024. The Long-Term ASM framework implements progressive surveillance stages based on specific criteria. Securities in Stage-IV would be shifted from Rolling Settlement (EQ) to Trade-for-Trade (BE) segment, though no securities qualify for this stage in the current update.

Compliance Requirements

  • Members must ensure 100% margin collection on all open positions in the three listed securities as of December 30, 2025
  • 100% margin requirement applies to all new positions created from December 31, 2025 onwards
  • Market participants must comply with ASM framework alongside all other surveillance measures
  • Members should monitor price band changes - securities moving out of ASM will have price bands reinstated to pre-ASM levels (subject to other surveillance measures)

Important Dates

  • December 26, 2025: Circular issued
  • December 29, 2025: Securities shortlisted in Long-Term ASM Framework Stage-I
  • December 30, 2025: Last day before margin requirements apply to open positions
  • December 31, 2025: 100% margin requirement becomes effective on all positions

Impact Assessment

Trading Impact: The 100% margin requirement will significantly reduce leveraged trading in these securities, potentially decreasing trading volumes and liquidity. Investors will need to commit full cash for positions, eliminating margin trading benefits.

Market Liquidity: These measures typically result in reduced market participation and wider bid-ask spreads due to higher capital requirements and perceived risk signals.

Investor Sentiment: Being placed under Long-Term ASM may negatively impact investor sentiment, despite NSE’s clarification that it is not an adverse action against the companies. The move of AATMAJ and TPHQ from short-term to long-term surveillance indicates persistent concerns.

Operational Requirements: Brokers must ensure adequate risk management systems to enforce 100% margin collection and educate clients about restricted trading in these securities.

Further Information: Members can access FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure or contact surveillance@nse.co.in for queries.

Impact Justification

High severity due to 100% margin requirement and potential shift to BE segment for affected securities, significantly impacting trading liquidity and investor participation.