Description

NSE imposes Short-Term Additional Surveillance Measure (ST-ASM) Stage I on 5 securities with increased margin requirements of 50% effective January 28, 2026.

Summary

NSE has placed 5 securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective January 27, 2026. The securities are Blue Pebble Limited, Excellent Wires and Packaging Limited, Shekhawati Industries Limited, Baazar Style Retail Limited, and Sudarshan Colorants India Limited. This surveillance action imposes a margin requirement of 50% or existing margin (whichever is higher, capped at 100%) on all open positions and new positions from January 28, 2026.

Key Points

  • 5 securities shortlisted for ST-ASM Stage I effective January 27, 2026
  • Margin requirement increased to 50% or existing margin, whichever is higher (maximum 100%)
  • Applies to open positions as on January 27, 2026 and new positions from January 28, 2026
  • No securities moved to ST-ASM Stage II or between stages
  • ASM framework operates in conjunction with other surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the company

Regulatory Changes

The Exchange has implemented ST-ASM Stage I on the following securities:

  1. BLUEPEBBLE - Blue Pebble Limited (INE0SAK01011)
  2. EXCELLENT - Excellent Wires and Packaging Limited (INE0Y4801011)
  3. SHEKHAWATI - Shekhawati Industries Limited (INE268L01046)
  4. STYLEBAAZA - Baazar Style Retail Limited (INE01FR01028)
  5. SUDARCOLOR - Sudarshan Colorants India Limited (INE492A01029)

This circular references previous ASM-related circulars: NSE/SURV/39265 (October 27, 2018), NSE/SURV/46557 (December 04, 2020), NSE/SURV/52144 (April 28, 2022), NSE/SURV/58558 (September 25, 2023), and NSE/SURV/64066 (September 20, 2024).

Compliance Requirements

  • Trading members must apply 50% margin or existing margin (whichever is higher) on all open positions as on January 27, 2026
  • All new positions created from January 28, 2026 must have the enhanced margin applied
  • Maximum margin rate is capped at 100%
  • Members must ensure compliance with ASM framework alongside other prevailing surveillance measures
  • Price band will be reinstated to pre-ASM levels when securities exit the framework, unless subject to other surveillance measures

Important Dates

  • January 23, 2026: Circular issued
  • January 27, 2026: Securities shortlisted under ST-ASM Stage I (effective date)
  • January 28, 2026: Enhanced margin requirements of 50% come into effect for open positions and new positions

Impact Assessment

Trading Impact: The 50% margin requirement significantly increases capital requirements for traders holding positions in these 5 securities, which may reduce trading volumes and liquidity.

Cost Impact: Higher margins increase the cost of carry for positions, potentially making short-term trading strategies less viable.

Market Perception: While NSE clarifies this is not an adverse action against companies, the ST-ASM classification signals heightened volatility or unusual price movements that triggered surveillance criteria.

Investor Considerations: Existing position holders must ensure adequate margin by January 28, 2026 to avoid forced liquidation. New investors should be aware of elevated margin requirements before entering positions.

For additional information, market participants can refer to NSE’s FAQ on Additional Surveillance Measures at https://www.nseindia.com/regulations/additional-surveillance-measure or contact surveillance@nse.co.in for queries.

Impact Justification

Significant margin increase to 50% for 5 securities impacts trading costs and liquidity for affected stocks