Description

NSE places 9 securities under ST-ASM Stage I with 50% margin requirement effective February 5, 2026, and excludes 2 securities from ASM framework.

Summary

NSE has imposed Short-Term Additional Surveillance Measure (ST-ASM) Stage I on 9 securities effective February 5, 2026, requiring minimum 50% margin on all positions. Two securities (BHARATRAS and DBOL) are being excluded from the ASM framework. The surveillance action is based on market monitoring criteria and should not be construed as adverse action against the companies.

Key Points

  • 9 securities included under ST-ASM Stage I effective February 5, 2026
  • Margin requirement increased to 50% or existing margin, whichever is higher (capped at 100%)
  • Applies to both open positions as of February 4, 2026 and new positions from February 5, 2026
  • No securities shortlisted for ST-ASM Stage II
  • No securities moving between Stage I and Stage II
  • 2 securities excluded from ASM framework: Bharat Rasayan Limited and Dhampur Bio Organics Limited
  • ASM framework operates in conjunction with all other surveillance measures

Regulatory Changes

This circular continues the implementation of the Additional Surveillance Measure (ASM) framework originally introduced through circular NSE/SURV/39265 dated October 27, 2018, with subsequent amendments. The ST-ASM framework provides for staged surveillance actions based on market behavior patterns.

Compliance Requirements

For Trading Members:

  • Ensure collection of minimum 50% margin (or existing margin, whichever is higher) on all positions in affected securities
  • Apply enhanced margins to open positions as of February 4, 2026
  • Apply enhanced margins to all new positions created from February 5, 2026 onwards
  • Maximum margin rate capped at 100%

Securities Under ST-ASM Stage I (effective February 4, 2026):

  1. Biofil Chemicals & Pharmaceuticals Limited (BIOFILCHEM) - INE829A01014
  2. FlySBS Aviation Limited (FLYSBS) - INE0VCK01011
  3. Panache Digilife Limited (PANACHE) - INE895W01019
  4. P. E. Analytics Limited (PROPEQUITY) - INE0KN801013
  5. Servotech Renewable Power System Limited (SERVOTECH) - INE782X01033
  6. Sharda Cropchem Limited (SHARDACROP) - INE221J01015
  7. T T Limited (TTL) - INE592B01024
  8. United Foodbrands Limited (UFBL) - INE382M01027
  9. Wanbury Limited (WANBURY) - INE107F01022

Securities Excluded from ASM Framework (effective February 4, 2026):

  1. Bharat Rasayan Limited (BHARATRAS) - INE838B01021
  2. Dhampur Bio Organics Limited (DBOL) - INE0I3401014

Important Dates

  • Circular Date: February 3, 2026
  • Effective Date: February 4, 2026 (securities shortlisted)
  • Margin Implementation Date: February 5, 2026 (enhanced margins applicable)

Impact Assessment

Market Impact:

  • Increased trading costs for the 9 affected securities due to higher margin requirements
  • Potential reduction in liquidity and trading volumes in these securities
  • Higher capital requirements for traders and investors holding positions

Operational Impact:

  • Trading members must adjust margin collection systems
  • Investors need to provide additional margin for existing positions
  • Reduced leverage available for trading these securities

Positive Developments:

  • Exclusion of BHARATRAS and DBOL from ASM framework indicates improved market behavior
  • Normal margin requirements restored for the 2 excluded securities

For additional information on the ASM framework, members may refer to the FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure or contact surveillance@nse.co.in.

Impact Justification

Significantly increases margin requirements to 50% for 9 securities, directly impacting trading costs and liquidity for affected stocks