Description

NSE places Loyal Textile Mills Limited and Prime Focus Limited under Long-Term ASM Framework Stage-I with 100% margin requirement effective February 11, 2026.

Summary

NSE has included two securities under the Long-Term Additional Surveillance Measure (ASM) Framework Stage-I effective February 11, 2026. The affected securities are Loyal Textile Mills Limited (LOYALTEX) and Prime Focus Limited (PFOCUS). This action imposes a mandatory 100% margin requirement on all positions in these securities. The surveillance measure is implemented purely for market monitoring purposes and should not be construed as adverse action against the companies.

Key Points

  • Two securities added to Long-Term ASM Framework Stage-I: LOYALTEX (INE970D01010) and PFOCUS (INE367G01038)
  • 100% margin requirement applicable on all open positions as on February 10, 2026 and new positions from February 11, 2026 onwards
  • No securities moved to Stage-IV (Trade-for-Trade segment) in this circular
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the companies
  • No securities are being moved between ASM stages or exiting the framework in this update

Regulatory Changes

This circular references the existing ASM framework established through multiple prior circulars (NSE/SURV/39265 dated October 27, 2018 and subsequent updates). The framework provides for progressive surveillance stages with increasing restrictions. Securities qualifying under Criteria VII would be shifted from Rolling Settlement (EQ) to Trade-for-Trade (BE) segment at Stage-IV, though no securities reached this level in the current update.

Compliance Requirements

  • Members must ensure 100% margin is collected on LOYALTEX and PFOCUS effective February 11, 2026
  • Margin applies to both existing open positions (as on February 10, 2026) and all new positions created from February 11, 2026
  • Price band restrictions from other surveillance frameworks will prevail if securities are under multiple measures
  • Members should monitor the NSE website for FAQs and updates on Additional Surveillance Measures

Important Dates

  • February 06, 2026: Circular issued (Circular Ref. No. 95/2026)
  • February 09, 2026: Securities shortlisted in Long-Term ASM Framework Stage-I
  • February 10, 2026: Last date with previous margin requirements
  • February 11, 2026: 100% margin requirement becomes effective

Impact Assessment

Trading Impact: The 100% margin requirement will severely restrict leveraged trading in LOYALTEX and PFOCUS, potentially reducing liquidity and trading volumes significantly. Traders must provide full upfront margin for any positions, eliminating intraday leverage.

Investor Impact: Existing position holders as of February 10, 2026 will face immediate margin calls to meet the 100% requirement. Failure to meet margin obligations may result in forced liquidation of positions.

Market Impact: The inclusion under ASM Stage-I signals heightened volatility or surveillance concerns in these securities. While not an adverse action against the companies, it may negatively affect investor sentiment and stock prices. The measure aims to prevent excessive speculation and protect investor interests in securities exhibiting unusual price or volume behavior.

Impact Justification

100% margin requirement significantly restricts trading in affected securities and indicates heightened surveillance concerns