Description

NSE notifies inclusion of securities under Long Term Additional Surveillance Measure (ASM) framework with 100% margin requirement effective January 02, 2026.

Summary

NSE has issued a circular regarding the inclusion of securities under the Long-Term Additional Surveillance Measure (ASM) framework. Two securities - Deem Roll Tech Limited (DEEM) and Prakash Steelage Limited (PRAKASHSTL) - have been shortlisted under Long-Term ASM Framework Stage-I. A 100% margin requirement will be applicable on all open positions as on January 01, 2026 and new positions created from January 02, 2026 onwards.

Key Points

  • Two securities included in Long-Term ASM Framework Stage-I: DEEM (Deem Roll Tech Limited) and PRAKASHSTL (Prakash Steelage Limited)
  • 100% margin will be applicable on all positions effective January 02, 2026
  • No securities shortlisted for Stage-IV or movement between stages
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely on account of market surveillance and not an adverse action against the company

Regulatory Changes

The circular implements enhanced surveillance measures under the Long-Term ASM framework. The 100% margin requirement represents a significant increase from standard margin levels, aimed at curtailing excessive speculation and volatility in the identified securities. Securities qualifying under Criteria VII (Stage IV) would be shifted from Rolling Settlement (EQ series) to Trade-for-Trade segment (BE series), though no securities currently fall under this category in this circular.

Compliance Requirements

  • Trading members must ensure 100% margin collection on all open positions in DEEM and PRAKASHSTL as on January 01, 2026
  • 100% margin must be collected on all new positions created from January 02, 2026 onwards
  • Members must comply with margin requirements for both the specified securities
  • Market participants must adhere to ASM framework provisions along with all other surveillance measures

Important Dates

  • Circular Date: December 30, 2025
  • Effective Date for Margin Requirement: January 02, 2026 (applicable on all open positions as on January 01, 2026 and new positions from January 02, 2026 onwards)
  • ASM Stage-I Inclusion Date: December 31, 2025

Impact Assessment

Market Impact: The 100% margin requirement will significantly reduce leverage available for trading in DEEM and PRAKASHSTL, likely leading to reduced trading volumes and liquidity in these securities. This measure is designed to curb excessive speculation and price volatility.

Trading Impact: Traders and investors holding positions in these securities will need to maintain full margin cover, which may force position liquidation for those unable to meet the enhanced margin requirements. New position creation will require upfront 100% margin payment.

Investor Impact: Retail and institutional investors will face increased capital requirements for trading these securities. The surveillance measure serves as a warning signal about potential concerns with price movements or trading patterns in these stocks.

Operational Impact: Brokers and trading members must update their risk management systems to enforce 100% margin collection for the specified securities and communicate these requirements to their clients well in advance of the implementation date.

Impact Justification

High ranking due to imposition of 100% margin requirement on specified securities, significantly impacting trading and liquidity for affected stocks.