Description

NSE announces inclusion of 5 securities under ST-ASM Stage I with 50% margin requirement effective February 04, 2026, and exclusion of 6 securities from ASM framework.

Summary

NSE has announced the inclusion of 5 securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I, effective February 04, 2026. The affected securities will be subject to increased margin requirements of 50% or existing margin (whichever is higher), capped at 100%. Additionally, 6 securities are being excluded from the ASM framework effective February 03, 2026.

Key Points

  • 5 securities included in ST-ASM Stage I: Bohra Industries, Gayatri Rubbers And Chemicals, Mtar Technologies, Sterlite Technologies, and Vijaypd Ceutical
  • Margin requirement increased to 50% or existing margin (whichever is higher), maximum capped at 100%
  • New margin rates apply to all open positions as on February 03, 2026 and new positions from February 04, 2026
  • 6 securities excluded from ASM framework: Blue Pebble, Encompass Design India, Giriraj Civil Developers, Shekhawati Industries, Baazar Style Retail, and Sudarshan Colorants India
  • No securities moved between Stage I and Stage II
  • No securities newly included in Stage II
  • ASM framework operates in conjunction with all other surveillance measures
  • Shortlisting is purely surveillance-based and not an adverse action against companies

Regulatory Changes

This circular is a continuation of the Additional Surveillance Measure (ASM) framework established through previous 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 Short-Term ASM (ST-ASM) applies heightened surveillance to securities that satisfy specific criteria indicating unusual price movements or trading patterns.

Compliance Requirements

  • Trading Members: Must ensure compliance with increased margin requirements of 50% or existing margin (whichever is higher) for all positions in the 5 securities under ST-ASM Stage I
  • Margin Collection: Applicable on both existing open positions as on February 03, 2026 and all new positions created from February 04, 2026
  • Risk Management: Members must update their risk management systems to reflect the new margin requirements
  • Client Communication: Members should inform clients holding positions in affected securities about the increased margin obligations

Important Dates

  • February 02, 2026: Circular issued
  • February 03, 2026: Cut-off date for existing open positions; exclusion of 6 securities from ASM framework becomes effective
  • February 04, 2026: New margin requirements of 50% become applicable for the 5 securities included in ST-ASM Stage I

Impact Assessment

Securities Included in ST-ASM Stage I:

  1. Bohra Industries Limited (BOHRAIND) - INE802W01023
  2. Gayatri Rubbers And Chemicals Limited (GRCL) - INE0LVM01018
  3. Mtar Technologies Limited (MTARTECH) - INE864I01014
  4. Sterlite Technologies Limited (STLTECH) - INE089C01029
  5. Vijaypd Ceutical Limited (VIJAYPD) - INE0WL901019

Securities Excluded from ASM Framework:

  1. Blue Pebble Limited (BLUEPEBBLE) - INE0SAK01011
  2. Encompass Design India Limited (ENCOMPAS) - INE433T01015
  3. Giriraj Civil Developers Limited (GIRIRAJ) - INE614Z01017
  4. Shekhawati Industries Limited (SHEKHAWATI) - INE268L01046
  5. Baazar Style Retail Limited (STYLEBAAZA) - INE01FR01028
  6. Sudarshan Colorants India Limited (SUDARCOLOR) - INE492A01029

Market Impact:

  • Increased trading costs for the 5 securities under ST-ASM due to higher margin requirements
  • Potential reduction in liquidity and trading volumes in these securities
  • Positive impact for excluded securities as they regain normal trading status
  • Notable inclusions are Sterlite Technologies (a mid-cap stock) and Mtar Technologies, which may see significant impact on trading activity
  • Traders and investors with leveraged positions will face increased capital requirements or potential position liquidation

Impact Justification

Significant margin increase to 50% for 5 securities including Sterlite Technologies and Mtar Technologies affects trading costs and liquidity. Immediate impact on market participants with positions in these securities.