Description

NSE circular announcing inclusion of 5 securities under ST-ASM Stage I framework with 50% margin requirement effective January 21, 2026, and exclusion of 3 securities from ASM framework.

Summary

The National Stock Exchange of India has issued a surveillance circular placing 5 securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective January 21, 2026. These securities will be subject to enhanced margin requirements of 50% or existing margin (whichever is higher, capped at 100%). Additionally, 3 securities are being excluded from the ASM framework. This action is part of NSE’s ongoing market surveillance framework and should not be construed as adverse action against the concerned companies.

Key Points

  • 5 securities added to ST-ASM Stage I: AAATECH (AAA Technologies Limited), ANTELOPUS (Antelopus Selan Energy Limited), DNAMEDIA (Diligent Media Corporation Limited), JTLIND (JTL Industries Limited), and PREMIERPOL (Premier Polyfilm Limited)
  • Enhanced margin requirement of 50% or existing margin (whichever is higher), capped at maximum 100%
  • No securities added to ST-ASM Stage II
  • No securities moving between Stage I and Stage II
  • 3 securities excluded from ASM framework: FELIX (Felix Industries Limited), GNA (GNA Axles Limited), and LASA (Lasa Supergenerics Limited)
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Circular references previous ASM-related circulars dating back to October 2018

Regulatory Changes

The Short-Term Additional Surveillance Measure (ST-ASM) framework continues to be implemented as a surveillance tool. The margin requirements for securities under ST-ASM Stage I are:

  • Applicable margin rate: 50% or existing margin, whichever is higher
  • Maximum margin cap: 100%
  • Applied to all open positions as on January 20, 2026
  • Applied to new positions created from January 21, 2026 onwards

This measure is purely market surveillance-driven and does not reflect negatively on the underlying companies.

Compliance Requirements

  • NSE members must apply the enhanced margin requirements (50% minimum, 100% maximum) for all 5 securities listed in Annexure I under ST-ASM Stage I
  • Margin requirements apply to both existing open positions as on January 20, 2026 and new positions from January 21, 2026
  • Market participants must comply with ST-ASM provisions alongside all other existing surveillance measures
  • Members should monitor the consolidated ASM list for their trading and risk management operations
  • For queries, members may contact NSE at surveillance@nse.co.in

Important Dates

  • January 19, 2026: Circular issue date (Circular Ref. No: 46/2026)
  • January 20, 2026: Cut-off date for existing open positions subject to new margin requirements
  • January 21, 2026: Effective date for ST-ASM Stage I inclusion and enhanced margin requirements
  • January 20, 2026: Effective date for exclusion of 3 securities from ASM framework

Impact Assessment

Market Impact: Medium - The inclusion of 5 securities under ST-ASM Stage I will increase capital requirements for traders holding positions in these stocks. The 50% minimum margin requirement (compared to standard margins) will reduce leverage and may lead to position unwinding or reduced trading volumes in these securities.

Operational Impact: Traders and brokers dealing in the affected securities need to ensure adequate margins are maintained. Risk management systems must be updated to reflect the new margin requirements. The positive aspect is the removal of 3 securities from ASM framework, which restores normal margin requirements for those stocks.

Investor Impact: Investors holding positions in AAATECH, ANTELOPUS, DNAMEDIA, JTLIND, and PREMIERPOL will face higher margin requirements, potentially impacting their ability to maintain leveraged positions. However, the exclusion of FELIX, GNA, and LASA from ASM framework benefits their investors through reduced margin requirements.

Surveillance Rationale: The ST-ASM framework is designed to curb excessive speculation and price volatility in securities that exhibit unusual price movements or trading patterns. The measure is preventive in nature and aims to protect market integrity.

Impact Justification

Affects trading margins for 5 securities under enhanced surveillance, requiring 50% margin. Also removes 3 securities from ASM framework. Limited to specific securities but significant impact for traders holding these stocks.