Description

NSE implements Short-Term Additional Surveillance Measure (ST-ASM) on select securities with increased margin requirements effective January 16, 2026.

Summary

NSE has issued a circular regarding the applicability of Short-Term Additional Surveillance Measure (ST-ASM) effective January 14, 2026. The exchange will impose enhanced surveillance measures including increased margin requirements on select securities that meet specific surveillance criteria. The margin rate will be 50% or existing margin (whichever is higher), capped at 100%, applicable to all open positions as of January 14, 2026 and new positions from January 16, 2026.

Key Points

  • Ausom Enterprise Limited (AUSOMENT) added to ST-ASM Stage I effective January 14, 2026
  • Vivimed Labs Limited (VIVIMEDLAB) moved from ST-ASM Stage I to Stage II
  • Three securities excluded from ASM framework: K2 Infragen Limited, Sheetal Cool Products Limited, and Shivalic Power Control Limited
  • Margin requirement set at 50% or existing margin (whichever is higher), maximum capped at 100%
  • ASM framework works in conjunction with other surveillance measures
  • Shortlisting is purely for market surveillance and not adverse action against companies

Regulatory Changes

The circular implements the Short-Term Additional Surveillance Measure framework with the following provisions:

  • Margin Requirements: Applicable rate of margin shall be 50% or existing margin, whichever is higher, subject to maximum rate capped at 100%
  • Application Scope: Applies to all open positions as on January 14, 2026 and new positions created from January 16, 2026
  • Framework Integration: ST-ASM shall be in conjunction with all other prevailing surveillance measures imposed by exchanges

Securities Added to ST-ASM Stage I:

  • Ausom Enterprise Limited (AUSOMENT) - ISIN: INE218C01016

Securities Moving from Stage I to Stage II:

  • Vivimed Labs Limited (VIVIMEDLAB) - ISIN: INE526G01021

Securities Excluded from ASM Framework:

  • K2 Infragen Limited (K2INFRA) - ISIN: INE0DEZ01013
  • Sheetal Cool Products Limited (SCPL) - ISIN: INE501Y01019
  • Shivalic Power Control Limited (SPCL) - ISIN: INE0T7B01010

Compliance Requirements

  • Members: Must comply with enhanced margin requirements for securities under ST-ASM framework
  • Margin Collection: Ensure collection of 50% minimum margin (or existing margin if higher) on all applicable positions
  • Position Monitoring: Track both existing open positions as of January 14, 2026 and new positions from January 16, 2026
  • Client Communication: Inform clients about enhanced surveillance measures and margin requirements
  • Queries: Direct any questions to surveillance@nse.co.in

Important Dates

  • January 13, 2026: Circular issue date (Circular Ref. No: 34/2026)
  • January 14, 2026: Effective date for securities shortlisted under ST-ASM framework
  • January 16, 2026: Enhanced margin requirements become applicable on all open positions and new positions

Impact Assessment

Trading Impact:

  • Increased capital requirements for trading in affected securities due to 50% minimum margin
  • Higher margin requirements may reduce trading volumes and liquidity in affected stocks
  • Existing position holders must maintain enhanced margins from January 16, 2026

Market Impact:

  • Enhanced surveillance aims to curb excessive speculation and volatility
  • May lead to temporary price corrections in affected securities
  • Stage movement (e.g., VIVIMEDLAB to Stage II) indicates escalating surveillance concerns

Operational Impact:

  • Brokers need to update margin collection systems before January 16, 2026
  • Risk management systems require reconfiguration for affected securities
  • Client communication and education about enhanced requirements necessary

Risk Management:

  • Framework designed to protect market integrity through preventive surveillance
  • Exclusion of three securities (K2INFRA, SCPL, SPCL) indicates improved compliance or risk profile
  • Consolidated ASM list maintains ongoing surveillance on multiple securities across stages

Impact Justification

Significant margin increase to 50% minimum affects trading positions and capital requirements for listed securities under surveillance framework