Description

NSE circular regarding securities shortlisted under Long-Term Additional Surveillance Measure (ASM) framework with 100% margin requirement effective January 13, 2026.

Summary

NSE has issued a surveillance circular placing four securities under Long-Term Additional Surveillance Measure (ASM) Framework Stage-I effective January 9, 2026. The applicable margin rate shall be 100% on all open positions as on January 12, 2026 and new positions from January 13, 2026 onwards. This measure is imposed purely on account of market surveillance and should not be construed as adverse action against the concerned companies.

Key Points

  • Four securities shortlisted under Long-Term ASM Framework Stage-I: Palred Technologies Limited, Rollatainers Limited, Shiv Aum Steels Limited, and Viji Finance Limited
  • 100% margin requirement applicable from January 13, 2026
  • Margin applies to all open positions as on January 12, 2026 and new positions created from January 13, 2026
  • No securities qualified under Stage-IV (Trade-for-Trade segment shift) criteria
  • No securities moved between ASM stages in this circular
  • ASM framework operates in conjunction with other prevailing surveillance measures
  • Circular reference number: NSE/SURV/72211, Circular Ref. No: 21/2026

Regulatory Changes

This circular implements the Long-Term Additional Surveillance Measure (ASM) framework as established under previous NSE circulars dating back to October 27, 2018. The framework allows NSE to impose enhanced margin requirements on securities that meet specific surveillance criteria. Securities under Stage-I attract 100% margin requirements, while securities qualifying under Criteria VII (Stage-IV) would be shifted from Rolling Settlement segment (Series: EQ) to Trade-for-Trade segment (Series: BE), though no securities qualified for Stage-IV in this instance.

Compliance Requirements

For Market Participants/Members:

  • Must collect and maintain 100% margin from clients for the four specified securities
  • Margin requirement applies to both existing open positions (as on January 12, 2026) and new positions from January 13, 2026
  • Must ensure compliance with ASM measures alongside all other prevailing surveillance measures
  • Should refer to NSE FAQs on ASM at https://www.nseindia.com/regulations/additional-surveillance-measure
  • May contact NSE Surveillance Department at surveillance@nse.co.in for queries

For Investors:

  • Trading in affected securities will require 100% upfront margin (no leverage)
  • Increased capital requirements for holding or creating new positions

Important Dates

  • January 8, 2026: Circular issued
  • January 9, 2026: Securities shortlisted under Long-Term ASM Framework Stage-I (effective date)
  • January 12, 2026: Last date for existing open positions under normal margin
  • January 13, 2026: 100% margin requirement becomes applicable for all open positions and new positions

Impact Assessment

Market Impact:

  • High impact on liquidity for the four affected securities (PALREDTEC, ROLLT, SHIVAUM, VIJIFIN)
  • 100% margin requirement eliminates leverage, likely reducing trading volumes
  • Increased volatility possible as traders adjust positions ahead of margin implementation
  • Price discovery may be affected due to reduced participation

Operational Impact:

  • Brokers must upgrade risk management systems to enforce 100% margin
  • Clients holding leveraged positions must either infuse additional funds or square off positions
  • Increased capital blocking for traders and investors in these securities
  • Potential forced liquidations if clients cannot meet margin requirements

Investor Impact:

  • Retail and institutional investors face significantly higher capital requirements
  • Trading strategies relying on leverage become unviable for these securities
  • Long-term investors unaffected if holding securities without leverage

Surveillance Context: The ASM framework is a preventive measure to curb excessive speculation and price manipulation. The shortlisting is based on objective surveillance criteria and does not reflect on the fundamental quality of the companies. However, the high margin requirement serves as a cooling measure for securities exhibiting unusual trading patterns.

Impact Justification

100% margin requirement on listed securities significantly impacts trading and liquidity for affected stocks, restricting leverage and increasing capital requirements for traders