Description

NSE announces inclusion of Pavna Industries Limited and Vardhman Polytex Limited under Long Term Additional Surveillance Measure (ASM) Stage I, with 100% margin requirement effective February 25, 2026.

Summary

NSE has issued Circular Ref. No. 135/2026 under the Additional Surveillance Measure (ASM) framework, shortlisting two securities — Pavna Industries Limited (PAVNAIND) and Vardhman Polytex Limited (VARDMNPOLY) — under the Long Term ASM Stage I framework, effective February 23, 2026. A 100% margin requirement will apply on all open and new positions from February 25, 2026.

Key Points

  • Two securities shortlisted under Long Term ASM Framework Stage I w.e.f. February 23, 2026: PAVNAIND (Pavna Industries Limited, INE07S101038) and VARDMNPOLY (Vardhman Polytex Limited, INE835A01029)
  • 100% margin applicable on all open positions as on February 24, 2026 and new positions from February 25, 2026 onwards
  • No securities shortlisted under Stage IV, Stage I to II, Stage II to III, or Stage I to IV transitions
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Upon exit from ASM, the price band reverts to the pre-ASM applicable band, unless subject to another surveillance measure
  • Shortlisting under ASM is purely a market surveillance action and should not be construed as adverse action against the company

Regulatory Changes

This circular references and builds upon earlier ASM framework circulars: NSE/SURV/39265 (Oct 27, 2018), NSE/SURV/45111 (Jul 22, 2020), NSE/SURV/46557 (Dec 04, 2020), NSE/SURV/48506 (Jun 04, 2021), NSE/SURV/52090 (Apr 22, 2022), NSE/SURV/63362 (Aug 09, 2024), and NSE/SURV/64066 (Sep 20, 2024). Securities qualifying under criteria VII (Stage IV) are shifted from Rolling Settlement (Series: EQ) to Trade-for-Trade segment (Series: BE).

Compliance Requirements

Important Dates

  • February 20, 2026: Circular issued
  • February 23, 2026: Effective date for inclusion of PAVNAIND and VARDMNPOLY in Long Term ASM Stage I
  • February 24, 2026: 100% margin applicable on all open positions as of this date
  • February 25, 2026: 100% margin applicable on all new positions created from this date onwards

Impact Assessment

Traders and investors holding or planning positions in Pavna Industries Limited (PAVNAIND) and Vardhman Polytex Limited (VARDMNPOLY) will face significantly higher capital requirements due to the 100% margin mandate. This is likely to reduce liquidity and trading volumes in these securities. The Stage I classification indicates an early-stage surveillance flag; no securities were moved to higher stages (II, III, or IV) in this circular, limiting broader market impact to these two scrips.

Impact Justification

100% margin requirement imposed on two securities effective February 25, 2026, significantly restricting trading conditions for affected stocks.