Description

NSE adds GRM Overseas Limited to Long-Term ASM Framework Stage-I with 100% margin requirement effective January 19, 2026.

Summary

NSE has issued a circular regarding the applicability of Additional Surveillance Measure (ASM) framework. GRM Overseas Limited (Symbol: GRMOVER, ISIN: INE192H01020) has been shortlisted for inclusion under Long-Term ASM Framework Stage-I effective January 14, 2026. A 100% margin requirement will be applicable on all open positions as of January 16, 2026 and new positions from January 19, 2026 onwards. No securities were moved to Stage-IV (Trade-for-Trade segment) in this circular.

Key Points

  • GRM Overseas Limited (GRMOVER) added to Long-Term ASM Framework Stage-I
  • 100% margin applicable on all positions starting January 19, 2026
  • Margin applies to both existing open positions (as on January 16, 2026) and new positions
  • No securities shifted to Trade-for-Trade (BE) segment in this update
  • ASM framework operates in conjunction with other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not adverse action against the company

Regulatory Changes

This circular implements enhanced surveillance measures under the Long-Term ASM Framework. The measure is issued under reference to previous NSE circulars dating from October 27, 2018 to September 20, 2024 that established and modified the ASM framework. The surveillance action requires significantly higher margin requirements to limit speculative activity in the identified security.

Compliance Requirements

  • Trading members must ensure 100% margin collection on GRMOVER from January 19, 2026
  • Margin requirement applies to all open positions as on January 16, 2026
  • Margin requirement applies to all new positions created from January 19, 2026 onwards
  • Members must comply with ASM framework provisions alongside all other surveillance measures
  • For queries, members should contact surveillance@nse.co.in

Important Dates

  • January 13, 2026: Circular issued
  • January 14, 2026: Securities shortlisted in Long-Term ASM Stage-I (effective date)
  • January 16, 2026: Cut-off date for existing open positions subject to 100% margin
  • January 19, 2026: 100% margin requirement becomes applicable

Impact Assessment

Market Impact: High - The 100% margin requirement on GRMOVER significantly increases capital requirements for traders holding or planning to take positions in this security. This will likely reduce liquidity and trading volumes in the stock.

Operational Impact: Trading members need to ensure adequate margin collection systems are in place and communicate the enhanced margin requirements to clients holding positions in GRMOVER. Clients with existing positions will need to provide additional margins by January 19, 2026.

Investor Impact: Investors holding positions in GRM Overseas Limited will face substantially higher margin obligations, potentially forcing position closures if unable to meet the 100% margin requirement. New investors will require significantly higher capital to take positions.

Impact Justification

100% margin requirement on GRM Overseas Limited creates significant trading restrictions and capital requirements for positions in this security, indicating heightened surveillance concerns