Description

NSE includes three securities in Long-Term ASM Framework Stage-I with 100% margin requirement effective January 9, 2026.

Summary

NSE has issued Circular No. 14/2026 implementing Additional Surveillance Measure (ASM) on three securities under the Long-Term ASM Framework Stage-I. The affected securities will be subject to 100% margin requirements on all open and new positions effective January 9, 2026. This action is part of NSE’s ongoing market surveillance framework and should not be construed as adverse action against the companies.

Key Points

  • Three securities included in Long-Term ASM Framework Stage-I effective January 7, 2026
  • 100% margin requirement applicable on all open positions as on January 8, 2026
  • 100% margin requirement on all new positions created from January 9, 2026 onwards
  • No securities moved to Stage-IV or Trade-for-Trade segment in this circular
  • No securities progressed between ASM stages (I to II, II to III, or I to IV)
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance purposes

Securities Affected

Long-Term ASM Framework Stage-I (w.e.f. January 7, 2026):

  1. Goyal Aluminiums Limited (Symbol: GOYALALUM, ISIN: INE705X01026)
  2. Lokesh Machines Limited (Symbol: LOKESHMACH, ISIN: INE397H01017)
  3. S&S Power Switchgears Limited (Symbol: S&SPOWER, ISIN: INE902B01017)

Regulatory Changes

This circular reinforces the Long-Term Additional Surveillance Measure framework previously established through circulars dated October 27, 2018, July 22, 2020, December 04, 2020, June 04, 2021, April 22, 2022, August 09, 2024, and September 20, 2024. The applicable surveillance action is a 100% margin requirement for the three identified securities.

Compliance Requirements

  • Trading Members: Must ensure 100% margin is collected on all open positions in the affected securities as on January 8, 2026
  • Trading Members: Must collect 100% margin on all new positions created from January 9, 2026 onwards
  • Market Participants: Must note that ASM framework applies in addition to all other prevailing surveillance measures
  • Investors: Should be aware of increased margin requirements when trading these securities

Important Dates

  • January 6, 2026: Circular issued
  • January 7, 2026: Securities officially included in Long-Term ASM Framework Stage-I
  • January 8, 2026: Last day before margin requirements take effect
  • January 9, 2026: 100% margin requirement becomes effective on all open and new positions

Impact Assessment

Market Impact:

  • Significantly reduced liquidity expected in the three affected securities due to 100% margin requirements
  • Trading volumes likely to decline as leveraged positions become impractical
  • Potential price volatility as existing leveraged positions are unwound before the effective date

Operational Impact:

  • Brokers must ensure systems are updated to enforce 100% margin collection
  • Investors holding open positions must arrange for additional margin by January 9, 2026
  • Risk management systems need to be adjusted for these securities

Investor Impact:

  • High - Investors cannot use leverage for trading these securities
  • Existing leveraged positions must be fully funded or squared off
  • Increased capital requirements for maintaining positions

For additional information on the Additional Surveillance Measure framework, refer to NSE’s FAQs at: https://www.nseindia.com/regulations/additional-surveillance-measure

For queries, contact: surveillance@nse.co.in

Impact Justification

100% margin requirement on affected securities significantly impacts trading and liquidity for these stocks, effective immediately from January 9, 2026