Description

NSE circular announcing inclusion of 6 securities in ST-ASM Stage I framework with increased margin requirements effective January 9, 2026.

Summary

NSE has issued a surveillance circular placing 6 securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective January 8-9, 2026. The affected securities will face increased margin requirements of 50% or existing margin (whichever is higher, capped at 100%) on all open positions and new positions created from January 9, 2026. Additionally, 6 securities are being excluded from the ASM framework.

Key Points

  • 6 securities shortlisted for ST-ASM Stage I effective January 8, 2026
  • Margin rate increases to 50% or existing margin (whichever higher), maximum capped at 100%
  • Margin applies to open positions as on January 8, 2026 and new positions from January 9, 2026
  • No securities in ST-ASM Stage II
  • No securities moving between stages
  • 6 securities excluded from ASM framework: CUBEXTUB, DYNAMIC, HINDCOPPER, MGSL, MMTC, SILVERTUC
  • ASM framework operates in conjunction with other surveillance measures
  • Shortlisting is purely for market surveillance, not adverse action against companies

Securities Under ST-ASM Stage I

  1. GANESHIN - Ganesh Infraworld Limited (INE0TVT01024)
  2. JAIPURKURT - Nandani Creation Limited (INE696V01013)
  3. MIRCELECTR - MIRC Electronics Limited (INE831A01028)
  4. ORIENTTECH - Orient Technologies Limited (INE0PPK01015)
  5. SHANKARA - Shankara Building Products Limited (INE274V01019)
  6. SHIGAN - Shigan Quantum Technologies Limited (INE03KJ01013)

Securities Excluded from ASM Framework

  1. CUBEXTUB - Cubex Tubings Limited (INE144D01012)
  2. DYNAMIC - Dynamic Services & Security Limited (INE0DZ701010)
  3. HINDCOPPER - Hindustan Copper Limited (INE531E01026)
  4. MGSL - Matrix Geo Solutions Limited (INE132901013)
  5. MMTC - MMTC Limited (INE123F01029)
  6. SILVERTUC - (Information incomplete in source)

Regulatory Changes

Enhanced surveillance measure implementation:

  • Margin requirements increased to minimum 50% for securities under ST-ASM Stage I
  • Existing margin retained if already higher than 50%
  • Maximum margin capped at 100%
  • Framework continues previous circulars: NSE/SURV/64066 (Oct 2018), NSE/SURV/39265 (Dec 2020), NSE/SURV/46557 (Apr 2022), NSE/SURV/52144 (Sep 2023), NSE/SURV/58558 (Sep 2024)

Compliance Requirements

  • Trading Members: Must apply 50% margin (or existing margin if higher) on all trades in listed securities from January 9, 2026
  • Margin Application: Applies to both existing open positions (as on January 8, 2026) and new positions created from January 9, 2026
  • Risk Management: Enhanced monitoring required for positions in affected securities
  • Client Communication: Members should inform clients about increased margin requirements

Important Dates

  • January 7, 2026: Circular issuance date
  • January 8, 2026: Securities placed under ST-ASM Stage I; margin applicable on open positions as on this date
  • January 9, 2026: Enhanced margin requirements become effective for new positions

Impact Assessment

Trading Impact: Traders holding positions in the 6 affected securities will face significantly higher margin requirements, potentially requiring additional capital infusion or position reduction. The 50% minimum margin increases trading costs and may reduce liquidity in these securities.

Market Impact: Increased margins may lead to reduced trading volumes and wider bid-ask spreads in affected securities. Existing position holders may face margin calls.

Positive Development: Exclusion of 6 securities (CUBEXTUB, DYNAMIC, HINDCOPPER, MGSL, MMTC, SILVERTUC) from ASM framework indicates improved market conditions for those stocks, with margin requirements returning to normal levels.

Surveillance Rationale: NSE emphasizes this is a market surveillance measure, not punitive action against companies. The framework aims to curb excessive speculation and ensure orderly trading.

Impact Justification

Significant margin increase to 50% for affected securities impacts trading costs and liquidity for traders with positions in these stocks