Description

NSE places ORIENTCER and PHOGLOBAL under ST-ASM Stage I with 50% margin requirement effective January 06, 2026, while removing 4 securities from ASM framework.

Summary

NSE has implemented Short-Term Additional Surveillance Measure (ST-ASM) Stage I on two securities effective January 06, 2026. ORIENT CERATECH LIMITED (ORIENTCER) and Phoenix Overseas Limited (PHOGLOBAL) will be subject to enhanced margin requirements of 50% or existing margin, whichever is higher, capped at 100%. Simultaneously, four securities - Arunaya Organics Limited, DCX Systems Limited, Jfl Life Sciences Limited, and Manaksia Steels Limited - are being removed from the ASM framework.

Key Points

  • Two securities added to ST-ASM Stage I: ORIENTCER (INE569C01020) and PHOGLOBAL (INE0FPO01018)
  • Margin requirement: 50% or existing margin, whichever is higher, subject to maximum 100%
  • Enhanced margins apply to all open positions as on January 05, 2026 and new positions from January 06, 2026
  • No securities added to or moved between ST-ASM Stage II
  • Four securities excluded from ASM framework: ARUNAYA, DCXINDIA, JFLLIFE, MANAKSTEEL
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Price bands will be reinstated to pre-ASM levels for securities exiting the framework (subject to other surveillance measures)

Regulatory Changes

This circular continues the Additional Surveillance Measure (ASM) framework previously established through circulars NSE/SURV/39265 (October 27, 2018), NSE/SURV/46557 (December 04, 2020), NSE/SURV/52144 (April 28, 2022), NSE/SURV/58558 (September 25, 2023), and NSE/SURV/64066 (September 20, 2024). The ST-ASM framework is designed as a short-term surveillance tool to monitor securities exhibiting unusual price movements or trading patterns.

Compliance Requirements

  • Trading Members: Must ensure margin requirements of 50% (or existing margin, whichever is higher) are collected for all positions in ORIENTCER and PHOGLOPAL
  • Clearing Members: Must collect and monitor enhanced margins on both existing and new positions
  • Market Participants: Should note that margin collection applies to positions held as on January 05, 2026 and all new positions created from January 06, 2026
  • Investors: Need to maintain higher margin levels for trading in affected securities
  • Members should refer to FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure for detailed information
  • Queries should be directed to surveillance@nse.co.in

Important Dates

  • January 02, 2026: Circular issue date
  • January 05, 2026: Reference date for existing open positions
  • January 06, 2026: Effective date for ST-ASM Stage I implementation and enhanced margin requirements
  • January 06, 2026: Effective date for exclusion of four securities from ASM framework

Impact Assessment

High Impact on Affected Securities: The 50% margin requirement significantly increases capital requirements for trading ORIENTCER and PHOGLOPAL, likely reducing trading volumes and liquidity in these securities. Existing position holders will face immediate margin calls.

Positive Impact for Excluded Securities: The four securities being removed from ASM (ARUNAYA, DCXINDIA, JFLLIFE, MANAKSTEEL) will see reduced margin requirements and restored price bands, potentially improving liquidity and trading activity.

Market Surveillance: The Exchange clarifies that inclusion in ST-ASM is purely a surveillance action based on market parameters and should not be construed as adverse action against the companies. This is intended to cool down speculative activity while protecting market integrity.

Operational Impact: Brokers and clearing members must update their risk management systems to implement the new margin requirements by January 06, 2026. Investors holding positions in affected securities should prepare for increased margin calls.

Impact Justification

High margin requirements (50%) significantly impact trading activity for affected securities. Immediate action required for market participants holding positions in ORIENTCER and PHOGLOBAL.