Description

NSE notifies inclusion of securities under Long-Term Additional Surveillance Measure with 100% margin requirement effective January 14, 2026.

Summary

NSE has issued surveillance measures under the Long-Term Additional Surveillance Measure (ASM) framework, shortlisting two securities for Stage-I inclusion effective January 14, 2026. The circular mandates 100% margin on all open and new positions in these securities. This measure is purely surveillance-based and should not be construed as adverse action against the companies.

Key Points

  • Two securities shortlisted under Long-Term ASM Framework Stage-I: Bedmutha Industries Limited (INE844K01012) and Shah Metacorp Limited (INE482J01021)
  • Bedmutha Industries moved from Daily Encumbrance to LTASM framework
  • 100% margin applicable on all open positions as on January 13, 2026 and new positions from January 14, 2026
  • Securities qualifying under criteria VII (Stage IV) will shift from Rolling Settlement (EQ) to Trade-for-Trade segment (BE)
  • No securities currently shortlisted for Stage IV or transitions between stages
  • ASM framework operates in conjunction with all other prevailing surveillance measures

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 framework applies enhanced margin requirements to securities meeting specific surveillance criteria.

Compliance Requirements

  • Members must apply 100% margin on all open positions in shortlisted securities as on January 13, 2026
  • 100% margin must be applied on all new positions created from January 14, 2026 onwards
  • Securities moved to Trade-for-Trade segment (Series BE) must be traded accordingly
  • Price bands will be reinstated when securities move out of the framework, subject to no other surveillance measures being applicable
  • Members should refer to FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure for detailed guidance

Important Dates

  • Circular Date: January 09, 2026
  • Effective Date for Stage-I inclusion: January 12, 2026 (shortlisting date)
  • Margin Application Date: January 14, 2026 (100% margin applicable on positions as on January 13, 2026 and new positions from this date)

Impact Assessment

Market Impact: High - The 100% margin requirement significantly reduces leverage and may lead to position unwinding, affecting liquidity and volatility in the shortlisted securities.

Trading Impact: Traders holding positions in Bedmutha Industries Limited and Shah Metacorp Limited will need to provide full margin cover, substantially increasing capital requirements. New position creation will also require 100% upfront margin.

Operational Impact: Brokers must ensure adequate margin collection systems and client communication regarding enhanced margin requirements. Risk management systems need to be updated to reflect the new margin parameters.

Member Concerns: For queries or clarifications, members can contact NSE at surveillance@nse.co.in.

Impact Justification

100% margin requirement on shortlisted securities significantly impacts trading and liquidity, with immediate effect on positions