Description

NSE adds three securities (Manaksia Aluminium, Newjaisa Technologies, Vadivarhe Speciality Chemicals) to Long-Term ASM Framework Stage I with 100% margin requirement effective January 20, 2026.

Summary

The National Stock Exchange has placed three securities under Long-Term Additional Surveillance Measure (ASM) Framework Stage I effective January 20, 2026. The affected securities are Manaksia Aluminium Company Limited (MANAKALUCO), Newjaisa Technologies Limited (NEWJAISA), and Vadivarhe Speciality Chemicals Limited (VSCL). These securities will be subject to 100% margin requirements on all positions.

Key Points

  • Three securities added to Long-Term ASM Framework Stage I: MANAKALUCO, NEWJAISA, and VSCL
  • 100% margin rate applicable on all open positions as of January 19, 2026 and new positions from January 20, 2026 onwards
  • No securities moved to Stage IV or shifted to Trade-for-Trade segment in this circular
  • No securities progressed from Stage I to Stage II, Stage II to Stage III, or Stage I to Stage IV
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the companies

Regulatory Changes

This circular implements the Long-Term Additional Surveillance Measure framework as per previous circulars (NSE/SURV/39265, NSE/SURV/45111, NSE/SURV/46557, NSE/SURV/48506, NSE/SURV/52090, NSE/SURV/63362, and NSE/SURV/64066). The three securities have satisfied unspecified criteria for inclusion under Long-Term ASM.

Compliance Requirements

  • Market participants must ensure 100% margin coverage for all open positions in the three affected securities as of January 19, 2026
  • All new positions in these securities created from January 20, 2026 onwards must maintain 100% margin requirement
  • Members should monitor positions and ensure adequate margin funding
  • Queries should be directed to surveillance@nse.co.in

Important Dates

  • January 14, 2026: Circular issuance date
  • January 16, 2026: Securities shortlisted for Long-Term ASM Framework Stage I (reference date)
  • January 19, 2026: Last day for existing positions before margin change
  • January 20, 2026: Effective date for 100% margin requirement on all positions

Impact Assessment

Trading Impact: The 100% margin requirement will significantly reduce leverage available for trading these securities, likely leading to decreased trading volumes and liquidity. Existing leveraged positions will require additional margin funding or face forced liquidation.

Investor Impact: Investors holding positions in MANAKALUCO, NEWJAISA, or VSCL will need to arrange for full margin coverage, potentially impacting their portfolio strategies and capital allocation. This may trigger selling pressure as traders unwind positions unable to meet the higher margin requirements.

Market Sentiment: Inclusion in ASM framework, while stated as not adverse, typically signals heightened surveillance concerns around price volatility, volume patterns, or corporate governance issues, which may negatively affect investor sentiment toward these securities.

Impact Justification

100% margin requirement significantly impacts trading liquidity and positions in three securities, affecting investors holding or trading these stocks