Description

NSE announces inclusion of IFCI Limited and Owais Metal And Mineral Processing Limited in ST-ASM Stage I, with 50% margin requirement effective January 22, 2026.

Summary

NSE has updated the Short-Term Additional Surveillance Measure (ST-ASM) framework, adding two securities to Stage I effective January 21, 2026. IFCI Limited and Owais Metal And Mineral Processing Limited will be subject to enhanced margin requirements of 50% or existing margin (whichever is higher), capped at 100%. Additionally, Ahlada Engineers Limited and Ausom Enterprise Limited are being excluded from the ASM framework.

Key Points

  • Two securities added to ST-ASM Stage I: IFCI Limited (INE039A01010) and Owais Metal And Mineral Processing Limited (INE0R8M01017)
  • No securities added to ST-ASM Stage II
  • No securities moving between stages
  • Two securities excluded from ASM framework: Ahlada Engineers Limited and Ausom Enterprise Limited (moved to ESM framework)
  • Margin rate of 50% or existing margin (whichever is higher), capped at 100%
  • ASM framework operates in conjunction with all other surveillance measures
  • Shortlisting is purely for market surveillance purposes and not an adverse action against companies

Regulatory Changes

This circular implements the Short-Term Additional Surveillance Measure framework as per previous Exchange circulars (NSE/SURV/39265, NSE/SURV/46557, NSE/SURV/52144, NSE/SURV/58558, and NSE/SURV/64066). The ST-ASM framework is designed to monitor securities showing unusual trading patterns or price movements.

Compliance Requirements

  • Trading members must apply applicable margin of 50% or existing margin (whichever is higher) on all open positions as on January 21, 2026
  • Same margin requirements apply to new positions created from January 22, 2026 onwards
  • Maximum margin rate is capped at 100%
  • Members must ensure compliance with all other prevailing surveillance measures
  • For queries, members can contact surveillance@nse.co.in

Important Dates

  • January 20, 2026: Circular issued
  • January 21, 2026: Securities included in ST-ASM Stage I (effective date)
  • January 22, 2026: Enhanced margin requirements applicable on all positions

Impact Assessment

Trading Impact: Traders holding positions in IFCI and OWAIS will face significantly higher margin requirements, potentially reducing leverage and trading volumes in these securities. The 50% minimum margin requirement may lead to position closures or reduced participation.

Market Impact: Limited to two securities, so broader market impact is minimal. However, affected stocks may experience increased volatility as traders adjust positions to meet margin requirements.

Positive Development: Two securities (AHLADA and AUSOMENT) are being excluded from ASM framework, allowing normal trading conditions to resume for these stocks.

Investor Awareness: Exchange clarifies that ASM inclusion is a surveillance measure and should not be interpreted as adverse action against the companies, helping prevent negative perception impact.

Impact Justification

Affects trading in two securities with increased margin requirements, while two securities are being excluded from ASM framework. Limited market-wide impact but significant for affected stocks and their traders.