Description

NSE circular on securities moving into ST-ASM Stage I framework with increased margin requirements of 50% or existing margin, whichever is higher, effective January 20, 2026.

Summary

NSE has issued a circular regarding the applicability of Short-Term Additional Surveillance Measure (ST-ASM) framework. One security, Davangere Sugar Company Limited (DAVANGERE), has been included in ST-ASM Stage I effective January 20, 2026. The applicable margin rate will be 50% or existing margin, whichever is higher, capped at 100%. Additionally, three securities (Nandani Creation Limited, Shankara Building Products Limited, and Shigan Quantum Technologies Limited) are being excluded from the ASM framework effective January 19, 2026.

Key Points

  • Davangere Sugar Company Limited (DAVANGERE, ISIN: INE179G01029) included in ST-ASM Stage I
  • Margin requirement: 50% or existing margin (whichever is higher), maximum capped at 100%
  • No securities shortlisted for ST-ASM Stage II
  • No securities moving between ST-ASM stages
  • Three securities excluded from ASM framework: JAIPURKURT (Nandani Creation Limited), SHANKARA (Shankara Building Products Limited), SHIGAN (Shigan Quantum Technologies Limited)
  • ASM framework works in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the company

Regulatory Changes

This circular follows previous NSE circulars on Additional Surveillance Measure (ASM) dated October 27, 2018, December 04, 2020, April 28, 2022, September 25, 2023, and September 20, 2024. The ST-ASM framework continues the exchange’s surveillance mechanism to monitor securities exhibiting abnormal price movements or trading patterns.

Compliance Requirements

  • Trading members must implement margin requirements of 50% or existing margin (whichever is higher) for DAVANGERE stock
  • Enhanced margins applicable on all open positions as on January 19, 2026 and new positions created from January 20, 2026
  • Maximum margin rate capped at 100%
  • Price band for securities exiting the framework will be reinstated to pre-ASM levels, unless subject to other surveillance measures

Important Dates

  • January 16, 2026: Circular issued
  • January 19, 2026: Securities excluded from ASM framework (JAIPURKURT, SHANKARA, SHIGAN)
  • January 20, 2026: Enhanced margin requirements become effective for DAVANGERE

Impact Assessment

The inclusion of Davangere Sugar Company Limited in ST-ASM Stage I will significantly impact trading in this security with doubled margin requirements, potentially reducing speculative activity and trading volumes. The higher margin requirements (minimum 50%) will increase capital costs for traders and investors holding positions in this stock.

The exclusion of three securities from the ASM framework indicates improved market behavior for these stocks, allowing normal trading conditions to resume. Market participants should note that ASM actions are surveillance-based and do not reflect negatively on the company’s fundamentals.

For queries, members can contact NSE at surveillance@nse.co.in or refer to FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure

Impact Justification

Routine surveillance action affecting one security with enhanced margin requirements. Three securities excluded from ASM framework. Standard market surveillance procedure with moderate impact on affected stock.