Description

NSE circular regarding securities shortlisted under Long Term Additional Surveillance Measure framework with 100% margin requirements effective January 29, 2026.

Summary

NSE issued a circular on January 23, 2026, regarding the Additional Surveillance Measure (ASM) framework. This circular references previous circulars dating back to October 2018 and outlines provisions for Long Term Additional Surveillance Measure. However, the annexure attached to this circular shows nil securities shortlisted across all ASM stages, indicating no securities are currently subject to these measures for this reporting period.

Key Points

  • 100% margin requirement applicable on all open positions as on January 28, 2026 and new positions from January 29, 2026 onwards (for securities meeting criteria)
  • Securities under Criteria VII (Stage IV) to be shifted from Rolling Settlement (EQ series) to Trade-for-Trade segment (BE series)
  • Effective date: January 29, 2026
  • All annexure tables show “Nil” entries - no securities currently shortlisted
  • ASM framework operates in conjunction with other surveillance measures
  • Price bands to be reinstated when securities move out of the framework
  • Shortlisting is for market surveillance purposes and not adverse action against companies

Regulatory Changes

No immediate regulatory changes as no securities are currently shortlisted. The circular reaffirms existing ASM framework provisions:

  • Long Term ASM applies 100% margin requirements
  • Stage IV securities shift to Trade-for-Trade segment
  • Framework continues alongside other surveillance measures
  • Price band adjustments when securities exit the framework

Compliance Requirements

For this reporting period, no compliance actions required as:

  • Stage I securities list: Nil
  • Stage IV securities list: Nil
  • Stage I to Stage II transitions: Nil
  • Stage II to Stage III transitions: Nil
  • Stage I to Stage IV transitions: Nil

Members should monitor future circulars for securities that may be shortlisted under ASM framework and refer to FAQ at https://www.nseindia.com/regulations/additional-surveillance-measure for guidance.

Important Dates

  • January 23, 2026: Circular issuance date
  • January 28, 2026: Last day before margin requirements apply (for applicable securities)
  • January 29, 2026: Effective date for 100% margin requirements and Trade-for-Trade segment shifts (for applicable securities)
  • January 27, 2026: Reference date for securities shortlisting in annexure

Impact Assessment

Market Impact: Minimal to none for this reporting period as no securities are shortlisted in the annexure.

Operational Impact: No immediate operational changes required by members or investors since all categories show nil entries.

Future Considerations: The circular serves as a procedural update maintaining the ASM surveillance framework. Market participants should remain aware that:

  • Securities can be added to ASM stages in future periods based on surveillance criteria
  • 100% margin requirements significantly impact leverage and trading strategies when applied
  • Trade-for-Trade segment classification restricts intraday trading and requires delivery settlement

Investor Impact: No current impact. When securities are shortlisted, investors face higher capital requirements and potential liquidity constraints.

Contact: surveillance@nse.co.in for queries.

Impact Justification

No securities shortlisted in any ASM stage as per annexure. Circular is procedural with nil impact for this reporting period.