Description

NSE implements Short-Term Additional Surveillance Measure (ST-ASM) Stage I on Kitex Garments Limited with 50% margin requirement effective February 01, 2026, while removing three securities from ASM framework.

Summary

National Stock Exchange of India has issued Circular No. 68/2026 implementing Short-Term Additional Surveillance Measure (ST-ASM) Stage I on Kitex Garments Limited effective January 30, 2026. The circular also removes three securities (IFCI Limited, Owais Metal And Mineral Processing Limited, and Shri Kanha Stainless Limited) from the ASM framework. This action is part of NSE’s ongoing market surveillance measures and follows previous circulars dating back to October 2018.

Key Points

  • Kitex Garments Limited (ISIN: INE602G01020) included in ST-ASM Stage I effective January 30, 2026
  • Margin requirement set at 50% or existing margin, whichever is higher, capped at maximum 100%
  • Enhanced margin applies to all open positions as on January 30, 2026 and new positions from February 01, 2026
  • No securities shortlisted for ST-ASM Stage II
  • No securities moving between Stage I and Stage II
  • Three securities excluded from ASM framework: IFCI, OWAIS, and SHRIKANHA
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the company

Regulatory Changes

The circular implements the Short-Term Additional Surveillance Measure framework as outlined in previous NSE circulars (NSE/SURV/39265 dated October 27, 2018, NSE/SURV/46557 dated December 04, 2020, NSE/SURV/52144 dated April 28, 2022, NSE/SURV/58558 dated September 25, 2023, and NSE/SURV/64066 dated September 20, 2024). The ST-ASM framework is a surveillance tool to monitor securities exhibiting abnormal price movements or trading patterns.

Compliance Requirements

  • Trading members must ensure applicable margin of 50% or existing margin (whichever is higher) is collected on KITEX, subject to maximum cap of 100%
  • Margin requirements apply to both existing open positions and new positions created from February 01, 2026
  • Members should refer to NSE’s FAQ on Additional Surveillance Measure at https://www.nseindia.com/regulations/additional-surveillance-measure for detailed guidance
  • Market participants must comply with ST-ASM provisions alongside all other existing surveillance measures

Important Dates

  • January 29, 2026: Circular issued
  • January 30, 2026: Effective date for ST-ASM Stage I inclusion of KITEX and exclusion of three securities from ASM framework
  • February 01, 2026: Enhanced margin requirements become applicable on new positions in KITEX

Impact Assessment

The inclusion of Kitex Garments Limited in ST-ASM Stage I will result in higher margin requirements for traders, potentially reducing trading volumes and liquidity in this counter. The 50% minimum margin requirement (up to 100% maximum) significantly increases the capital required for trading positions, which may discourage speculative activity. Conversely, the removal of IFCI Limited, Owais Metal And Mineral Processing Limited, and Shri Kanha Stainless Limited from the ASM framework will ease trading restrictions on these securities, potentially improving liquidity. The consolidated ASM list shows continued surveillance on multiple securities including Aarti Surfactants Limited, Antelopus Selan Energy Limited, Baweja Studios Limited, and Bharat Rasayan Limited at various stages.

Impact Justification

ST-ASM Stage I impacts one security (KITEX) with enhanced margin requirements of 50% minimum, while three securities are being removed from ASM framework, indicating moderate market impact limited to specific counters