Description

NSE circular regarding securities shortlisted under Short-Term Additional Surveillance Measure (ST-ASM) framework with enhanced margin requirements effective January 9, 2026.

Summary

NSE has shortlisted securities under the Short-Term Additional Surveillance Measure (ST-ASM) framework effective January 9, 2026. Four securities have been newly included in ST-ASM Stage I with enhanced margin requirements of 50% or existing margin (whichever is higher, capped at 100%). One security moved from Stage II to Stage I, and one security (Sukhjit Starch & Chemicals Limited) is being excluded from the ASM framework.

Key Points

  • Margin requirement increased to 50% or existing margin (whichever is higher), capped at 100%
  • Enhanced margins applicable on all open positions as on January 9, 2026 and new positions from January 12, 2026
  • Four securities newly shortlisted in ST-ASM Stage I: ENCOMPAS, FELIX, GNA, LASA
  • Giriraj Civil Developers Limited (GIRIRAJ) moved from Stage II to Stage I
  • Sukhjit Starch & Chemicals Limited (SUKHJITS) excluded from ASM framework
  • No securities in Stage II currently
  • ASM framework operates in conjunction with other surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against companies

Regulatory Changes

Enhanced margin requirements under ST-ASM Stage I:

  • Minimum margin: 50% or existing margin, whichever is higher
  • Maximum margin cap: 100%
  • Applies to both existing open positions and new positions created from implementation date

Compliance Requirements

  • Members must apply 50% minimum margin (or existing margin if higher) on affected securities
  • Margins applicable from January 12, 2026 for:
    • All open positions as on January 9, 2026
    • All new positions created from January 12, 2026
  • Members should monitor ASM framework updates in conjunction with other surveillance measures
  • Queries to be directed to surveillance@nse.co.in

Important Dates

  • January 8, 2026: Circular issue date
  • January 9, 2026: Effective date for securities shortlisting
  • January 12, 2026: Enhanced margin requirements become applicable

Impact Assessment

Market Impact: High - The 50% minimum margin requirement significantly increases capital requirements for traders holding positions in affected securities, likely reducing liquidity and trading volumes.

Affected Securities:

  • ST-ASM Stage I (New): Encompass Design India Limited, Felix Industries Limited, GNA Axles Limited, Lasa Supergenerics Limited
  • Stage II to Stage I: Giriraj Civil Developers Limited
  • Excluded from ASM: Sukhjit Starch & Chemicals Limited (positive development)

Operational Impact: Trading members must adjust margin collection systems and communicate requirements to clients holding or trading these securities. Clients may face margin calls or position liquidation if unable to meet enhanced requirements.

Impact Justification

Significant margin increase to 50% minimum for affected securities, impacting trading positions and liquidity for listed companies