Description

NSE implements Short-Term Additional Surveillance Measure (ST-ASM) Stage I on Ahlada Engineers Limited and Vilin Bio Med Limited effective January 13, 2026, with margin requirements of 50% or existing margin (whichever is higher, capped at 100%).

Summary

The National Stock Exchange of India has announced the inclusion of two securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective January 13, 2026. Ahlada Engineers Limited (AHLADA) and Vilin Bio Med Limited (VILINBIO) will be subject to enhanced margin requirements of 50% or existing margin, whichever is higher, with a maximum cap of 100%. Additionally, five securities will be excluded from the ASM Framework: Cedaar Textile Limited, Chavda Infra Limited, Filatex Fashions Limited, KSR Footwear Limited, and Mangalam Drugs.

Key Points

  • Two securities added to ST-ASM Stage I: AHLADA (Ahlada Engineers Limited) and VILINBIO (Vilin Bio Med Limited)
  • Enhanced margin requirement of 50% or existing margin (whichever is higher) applicable from January 13, 2026
  • Margin rate capped at maximum 100%
  • Margins apply to all open positions as on January 12, 2026 and new positions from January 13, 2026
  • Five securities excluded from ASM Framework: CEDAAR, CHAVDA, FILATFASH, KSR, MANGALAM
  • No securities moving to ST-ASM Stage II
  • No securities moving between stages
  • ASM framework operates in conjunction with other prevailing surveillance measures
  • Price bands will be reinstated for securities exiting the framework (subject to other surveillance measures)

Regulatory Changes

This circular is issued pursuant to previous Exchange circulars on Additional Surveillance Measure (ASM) dated October 27, 2018, December 04, 2020, April 28, 2022, September 25, 2023, and September 20, 2024. The ST-ASM framework is a surveillance tool designed to monitor securities exhibiting unusual price movements or trading patterns.

Compliance Requirements

  • Trading Members: Must ensure compliance with enhanced margin requirements of minimum 50% (capped at 100%) for AHLADA and VILINBIO effective January 13, 2026
  • Risk Management: Applicable margins must be collected on all open positions as on January 12, 2026 and all new positions created from January 13, 2026
  • Client Communication: Members should inform clients about the enhanced surveillance measures and margin implications
  • Monitoring: Members must monitor these securities in conjunction with all other prevailing surveillance measures

Important Dates

  • January 09, 2026: Circular issued
  • January 12, 2026: Cut-off date for existing open positions
  • January 13, 2026: Effective date for ST-ASM Stage I implementation and enhanced margin requirements
  • January 13, 2026: Effective date for exclusion of five securities from ASM Framework

Impact Assessment

Market Impact: The inclusion of AHLADA and VILINBIO under ST-ASM Stage I will significantly impact trading dynamics in these securities. The 50% minimum margin requirement (or higher) will substantially increase capital costs for traders and investors, potentially reducing speculative activity and trading volumes.

Liquidity Impact: Enhanced margin requirements typically result in reduced liquidity as traders face higher capital commitments. This may lead to wider bid-ask spreads and reduced market depth for the affected securities.

Investor Impact: Existing position holders must arrange for additional margins by January 13, 2026. Failure to meet margin requirements could result in position liquidation. New investors will face higher entry barriers due to increased margin costs.

Positive Developments: The exclusion of five securities (CEDAAR, CHAVDA, FILATFASH, KSR, MANGALAM) from the ASM Framework indicates improved trading behavior and reduced surveillance concerns for these stocks. Their margin requirements and price bands will be normalized, potentially improving liquidity.

Surveillance Context: The NSE clarifies that shortlisting under ASM is purely a market surveillance action and should not be construed as adverse action against the companies. The measure aims to curb excessive speculation and protect investor interests in securities exhibiting unusual patterns.

Impact Justification

High margin requirements (50% minimum, capped at 100%) directly impact trading costs and liquidity for the affected securities. Traders holding positions in these stocks will face increased capital requirements.