Description

NSE announces inclusion of 16 securities under ST-ASM Stage I with 50% margin requirement effective February 09, 2026.

Summary

NSE has placed 16 securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective February 06, 2026. The surveillance action requires a margin of 50% or existing margin (whichever is higher, capped at 100%) on all open positions and new positions created from February 09, 2026. This measure is purely for market surveillance and should not be construed as adverse action against the companies.

Key Points

  • 16 securities included under ST-ASM Stage I framework
  • Margin requirement: 50% or existing margin, whichever is higher (maximum 100%)
  • Applies to all open positions as on February 06, 2026
  • Applies to new positions created from February 09, 2026 onwards
  • No securities moved to Stage II or transitioned between stages
  • ASM framework operates in conjunction with other surveillance measures
  • Shortlisting is for market surveillance purposes only, not adverse action against companies

Regulatory Changes

Enhanced margin requirements imposed under ST-ASM framework for the following 16 securities:

  1. ADF Foods Limited (ADFFOODS) - INE982B01027
  2. Avanti Feeds Limited (AVANTIFEED) - INE871C01038
  3. CARYSIL LIMITED (CARYSIL) - INE482D01024
  4. Durlax Top Surface Limited (DURLAX) - INE0OUW01013
  5. Faze Three Limited (FAZE3Q) - INE963C01033
  6. Gokaldas Exports Limited (GOKEX) - INE887G01027
  7. Garware Hi-Tech Films Limited (GRWRHITECH) - INE291A01017
  8. Indo Count Industries Limited (ICIL) - INE483B01026
  9. Nelcast Limited (NELCAST) - INE189I01024
  10. NGL Fine-Chem Limited (NGLFINE) - INE887E01022
  11. Pearl Global Industries Limited (PGIL) - INE940H01022
  12. Precot Limited (PRECOT) - INE283A01014
  13. Ramco Systems Limited (RAMCOSYS) - INE246B01019
  14. Suven Life Sciences Limited (SUVEN) - INE495B01038
  15. Tijaria Polypipes Limited (TIJARIA) - INE440L01017
  16. Yudiz Solutions Limited (YUDIZ) - INE09FA01019

This circular follows 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 collect and maintain minimum 50% margin (or existing margin if higher, capped at 100%) for all positions in the 16 listed securities
  • Clients: Must provide adequate margins as per the new requirements
  • Risk Management Systems: Update margin calculations to reflect ST-ASM Stage I requirements
  • Margin applies to both existing open positions and new positions created from the effective date
  • Members should refer to NSE’s Additional Surveillance Measure FAQs at https://www.nseindia.com/regulations/additional-surveillance-measure
  • For queries, contact surveillance@nse.co.in

Important Dates

  • February 05, 2026: Circular issued (Circular Ref. No: 93/2026)
  • February 06, 2026: Securities included under ST-ASM Stage I (effective date for classification)
  • February 09, 2026: Enhanced margin requirements (50% or existing margin, whichever is higher) become applicable on:
    • All open positions as on February 06, 2026
    • New positions created from this date onwards

Impact Assessment

Trading Impact: The 50% minimum margin requirement significantly increases capital requirements for traders and investors holding positions in these 16 securities. This will likely reduce speculative activity and potentially impact liquidity in these stocks.

Cost Implications: Traders with existing positions must arrange additional funds to meet the enhanced margin requirements by February 09, 2026, or face potential position squaring.

Market Sentiment: While NSE clarifies this is a surveillance measure and not adverse action, the inclusion may create negative sentiment and increase volatility in the affected securities.

Broker Operations: Brokers need to update their risk management systems, communicate with affected clients, and ensure compliance with the new margin framework within the specified timeline.

Liquidity Considerations: Higher margin requirements typically reduce trading volumes and liquidity, which may widen bid-ask spreads and increase price volatility in these securities.

Impact Justification

Significant increase in margin requirements to 50% for 16 securities affects trading costs and liquidity for market participants holding positions in these stocks.