Description

NSE circular regarding securities under Long Term Additional Surveillance Measure framework with 100% margin requirements effective January 21, 2026.

Summary

NSE has issued a circular regarding the Additional Surveillance Measure (ASM) framework. This circular updates members on securities that have satisfied criteria for inclusion under Long Term Additional Surveillance Measure. However, all annexures show “Nil” entries, indicating no securities are being added or moved between stages at this time. The circular reiterates the surveillance framework provisions that will apply when securities are shortlisted.

Key Points

  • Circular references previous ASM framework circulars from October 2018 to September 2024
  • 100% margin applicable on all open positions as on January 20, 2026 and new positions from January 21, 2026 onwards
  • Securities under Criteria VII (Stage IV) will be shifted from Rolling Settlement (EQ) to Trade-for-Trade segment (BE)
  • Current circular shows no securities being added to any ASM stage (all annexures report “Nil”)
  • ASM framework operates in conjunction with other surveillance measures
  • Price band will be reinstated when scrips move out of the framework, subject to other surveillance measures
  • Shortlisting under ASM is for market surveillance purposes and not an adverse action against companies

Regulatory Changes

No new regulatory changes introduced. This circular reaffirms existing ASM framework provisions:

  • Long Term ASM stages (I through IV) with progressive surveillance actions
  • Mandatory 100% margin requirement for securities under Long Term ASM
  • Automatic shift to Trade-for-Trade segment for Stage IV securities
  • Price band adjustments linked to surveillance framework status

Compliance Requirements

Important Dates

  • January 16, 2026: Circular issued
  • January 19, 2026: Effective date for securities shortlisted in various ASM stages (though current list shows nil securities)
  • January 20, 2026: Cut-off date for open positions subject to 100% margin
  • January 21, 2026: 100% margin applicable from this date onwards on all positions; Stage IV securities shift to T2T segment

Impact Assessment

Market Impact: Minimal immediate impact as no securities are currently being added or moved between ASM stages. This is a routine update maintaining the surveillance framework.

Operational Impact: No immediate operational changes required as all annexures show “Nil” entries. Members should remain aware of ASM framework provisions for future applicability.

Investor Impact: No direct impact on investors at this time. When securities are shortlisted in future, affected stocks will face higher margin requirements (100%) and potential liquidity constraints if moved to Trade-for-Trade segment.

Framework Significance: Maintains NSE’s ongoing market surveillance mechanism to address concerns related to price volatility and speculative trading in specific securities.

Impact Justification

Routine surveillance circular with no securities listed in current update; establishes framework for future ASM actions with 100% margin and T2T segment shifts