Description

NSE places three securities under ST-ASM Stage I with 50% margin requirements effective January 2, 2026, and excludes one security from ASM framework.

Summary

NSE has issued a surveillance circular placing three securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective January 1, 2026. The affected securities are Maha Rashtra Apex Corporation Limited, Rain Industries Limited, and Sukhjit Starch & Chemicals Limited. These securities will be subject to higher margin requirements of 50% or existing margin (whichever is higher), capped at 100%. Additionally, Sar Televenture Limited is being excluded from the ASM framework.

Key Points

  • Three securities shortlisted under ST-ASM Stage I: MAHAPEXLTD, RAIN, and SUKHJITS
  • Margin requirement increased to 50% or existing margin, whichever is higher (maximum 100%)
  • Margins apply to open positions as on January 1, 2026 and new positions from January 2, 2026
  • No securities listed under ST-ASM Stage II
  • No securities moving between Stage I and Stage II
  • ASM framework works in conjunction with other surveillance measures
  • Exclusion from ASM framework: Sar Televenture Limited (SARTELE)
  • Shortlisting is purely for market surveillance and not an adverse action against companies

Regulatory Changes

This circular implements the Short-Term Additional Surveillance Measure framework, which is part of NSE’s broader ASM framework introduced through previous circulars dated October 27, 2018, December 4, 2020, April 28, 2022, September 25, 2023, and September 20, 2024. The ST-ASM applies enhanced surveillance to securities exhibiting specific risk characteristics.

Compliance Requirements

  • Market participants must ensure compliance with 50% margin requirements for the three listed securities
  • Margin requirements apply to both existing open positions (as on January 1, 2026) and new positions created from January 2, 2026
  • Members should monitor these securities for any further surveillance actions
  • Trading members must implement necessary risk management controls

Important Dates

  • December 31, 2025: Circular issue date
  • January 1, 2026: Effective date for ST-ASM Stage I inclusion and ASM exclusion
  • January 2, 2026: Margin requirements applicable on new positions

Impact Assessment

Securities Under ST-ASM Stage I (w.e.f. January 1, 2026):

  1. Maha Rashtra Apex Corporation Limited (MAHAPEXLTD) - ISIN: INE843B01013
  2. Rain Industries Limited (RAIN) - ISIN: INE855B01025
  3. Sukhjit Starch & Chemicals Limited (SUKHJITS) - ISIN: INE450E01029

Securities Excluded from ASM (w.e.f. January 1, 2026):

  1. Sar Televenture Limited (SARTELE) - ISIN: INE0PUC01020

Market Impact:

  • Increased margin requirements will reduce leverage availability for traders in affected securities
  • Higher capital requirements may lead to reduced liquidity in these stocks
  • Existing position holders must maintain higher margins, potentially forcing position adjustments
  • The exclusion of SARTELE from ASM framework indicates improved market surveillance metrics

Operational Impact:

  • Brokers need to adjust margin collection systems for affected securities
  • Risk management systems must be updated to reflect new margin requirements
  • Investors holding positions in these securities will face increased capital requirements

For queries, market participants can contact NSE at surveillance@nse.co.in or refer to the ASM FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure

Impact Justification

Affects three securities with enhanced margin requirements, impacting trading positions and costs for investors in these stocks