Description

NSE implements Short-Term Additional Surveillance Measure (ST-ASM) Stage I on 5 securities with 50% margin requirement effective February 2, 2026.

Summary

NSE has shortlisted 5 securities for inclusion under Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective February 1, 2026. The applicable margin rate will be 50% or existing margin (whichever is higher), capped at 100%, on all open positions as of February 1, 2026 and new positions created from February 2, 2026 onwards. This surveillance measure is implemented to address market concerns and is in conjunction with other prevailing surveillance frameworks.

Key Points

  • 5 securities included in ST-ASM Stage I: BAJAJCON (Bajaj Consumer Care Limited), HYBRIDFIN (Hybrid Financial Services Limited), OMAXAUTO (Omax Autos Limited), SHIGAN (Shigan Quantum Technologies Limited), and TECHERA (TechEra Engineering India Limited)
  • Margin requirement: 50% or existing margin, whichever is higher, subject to maximum cap of 100%
  • No securities shortlisted in ST-ASM Stage II
  • No securities moving between stages
  • Shortlisting is purely on account of market surveillance and not an adverse action against the companies
  • ASM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

Enhanced margin requirements under ST-ASM framework for shortlisted securities. The margin rate escalation from standard levels to minimum 50% represents a significant increase in capital requirements for trading these securities. This follows the framework established through earlier circulars (NSE/SURV/39265, NSE/SURV/46557, NSE/SURV/52144, NSE/SURV/58558, and NSE/SURV/64066).

Compliance Requirements

  • All NSE members must apply minimum 50% margin (or existing margin if higher, capped at 100%) on the 5 shortlisted securities
  • Margin applicable to all open positions as on February 1, 2026
  • Margin applicable to all new positions created from February 2, 2026
  • Members must ensure compliance with ASM framework alongside all other surveillance measures
  • Price band reinstatement to pre-ASM levels when securities exit the framework (subject to no other surveillance measures being applicable)

Important Dates

  • January 30, 2026: Circular issued
  • February 1, 2026: Securities shortlisted under ST-ASM Stage I, margin applies to all open positions as of this date
  • February 2, 2026: Enhanced margin requirements become effective for new positions

Impact Assessment

Trading Impact: The 50% minimum margin requirement significantly increases capital costs for traders and investors holding or planning to trade these securities. This may result in reduced liquidity and trading volumes for the affected stocks.

Investor Impact: Existing position holders must meet enhanced margin requirements immediately, potentially requiring additional capital infusion or position reduction. New investors face substantially higher entry barriers.

Market Impact: The ST-ASM classification signals heightened volatility or abnormal price movements in these securities, warranting caution. The measure aims to curb excessive speculation and protect investor interests.

Affected Securities:

  1. BAJAJCON - Bajaj Consumer Care Limited (INE933K01021)
  2. HYBRIDFIN - Hybrid Financial Services Limited (INE965B01022)
  3. OMAXAUTO - Omax Autos Limited (INE090B01011)
  4. SHIGAN - Shigan Quantum Technologies Limited (INE03KJ01013)
  5. TECHERA - TechEra Engineering (India) Limited (INE0JQS01019)

Impact Justification

High margin requirement of 50% imposed on shortlisted securities affects trading positions and costs for market participants. Immediate compliance required for all open and new positions.