Description

NSE implements Long-Term ASM framework on securities, applying 100% margin requirement effective January 06, 2026, with Indosolar Limited shifted to Trade-for-Trade segment.

Summary

NSE has applied Long-Term Additional Surveillance Measure (ASM) framework to specific securities effective January 02, 2026. Two securities are newly shortlisted: Onyx Biotec Limited enters Stage-I, and Indosolar Limited (WAAREEINDO) enters Stage-IV. A 100% margin requirement will apply from January 06, 2026 on all open and new positions. Indosolar Limited will be shifted from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE) effective January 06, 2026.

Key Points

  • Long-Term ASM framework applied based on surveillance criteria outlined in previous circulars from 2018-2024
  • Onyx Biotec Limited (ONYX) shortlisted in Long-Term ASM Framework Stage-I
  • Indosolar Limited (WAAREEINDO) shortlisted in Long-Term ASM Framework Stage-IV
  • 100% margin applicable on all open positions as of January 05, 2026 and new positions from January 06, 2026 onwards
  • WAAREEINDO shifted from Rolling Settlement (EQ series) to Trade-for-Trade (BE series) from January 06, 2026
  • No securities moving between stages (Stage-I to Stage-II, Stage-II to Stage-III, Stage-I to Stage-IV, or Stage-II to Stage-IV)
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance purposes and not an adverse action against the company

Regulatory Changes

This circular implements the Long-Term ASM framework as established under previous NSE circulars (NSE/SURV/39265, NSE/SURV/45111, NSE/SURV/46557, NSE/SURV/48506, NSE/SURV/52090, NSE/SURV/63362, and NSE/SURV/64066). The key regulatory actions are:

  1. Margin Requirements: 100% margin rate applied to affected securities
  2. Segment Transfer: Securities meeting Criteria VII (Stage-IV) transferred from Rolling Settlement to Trade-for-Trade segment on T+3 basis (T-day being circular issuance date)
  3. Framework Application: ASM measures apply alongside all other existing surveillance measures

Compliance Requirements

For Trading Members:

  • Ensure 100% margin collection on all open positions in affected securities as of January 05, 2026
  • Apply 100% margin on all new positions in affected securities from January 06, 2026
  • Update trading systems to reflect WAAREEINDO segment change from EQ to BE series
  • Comply with Trade-for-Trade settlement requirements for WAAREEINDO from January 06, 2026

For Market Participants:

  • Note that affected securities will require full upfront margin for trading
  • Understand that WAAREEINDO can only be traded on a delivery basis (no intraday trading) from January 06, 2026
  • Monitor NSE surveillance communications for any further updates

Important Dates

  • January 01, 2026: Circular issuance date
  • January 02, 2026: ASM framework Stage classification becomes effective
  • January 05, 2026: Last day before margin requirement applies; 100% margin required on open positions as of this date
  • January 06, 2026:
    • 100% margin requirement takes effect on all positions
    • WAAREEINDO shifted from EQ series to BE series (Trade-for-Trade)

Impact Assessment

Market Impact:

  • High impact on affected securities: 100% margin requirement will significantly reduce leverage and may decrease trading volumes in ONYX and WAAREEINDO
  • Liquidity constraints: Full margin requirement eliminates intraday trading opportunities and increases capital requirements for position-taking
  • WAAREEINDO specific impact: Trade-for-Trade classification removes all intraday liquidity, requiring delivery settlement for all transactions

Operational Impact:

  • Trading members must adjust margin collection systems and risk management frameworks
  • Investors holding positions in these securities must arrange for increased margin funds
  • Surveillance framework escalation indicates heightened regulatory scrutiny on price movements and trading patterns in these securities

Investor Considerations:

  • Higher capital requirements for trading these securities
  • Reduced liquidity and wider bid-ask spreads likely
  • Potential for further surveillance actions if securities continue to meet ASM criteria
  • WAAREEINDO investors must take compulsory delivery, affecting short-term trading strategies

Impact Justification

100% margin requirement on affected securities significantly impacts trading liquidity and capital requirements. WAAREEINDO (Indosolar Limited) moved to Trade-for-Trade segment represents major trading restriction.