Description
NSE includes four securities under ST-ASM Stage I with enhanced margin requirements of 50% effective February 25, 2026, while Avanti Feeds Limited moves from Stage II to Stage I.
Summary
NSE’s Surveillance department has issued Circular No. 140/2026 (Download Ref: NSE/SURV/72943) placing four securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective February 25, 2026. Additionally, Avanti Feeds Limited is moved from ST-ASM Stage II back to Stage I. No securities have been added to Stage II, and no Stage I securities are being elevated to Stage II.
Key Points
- Four securities newly added to ST-ASM Stage I: BUILDPRO, ESCONET, RCDL, and VLEGOV, effective February 25, 2026.
- ST-ASM Stage II additions: Nil.
- Movement from Stage I to Stage II: Nil.
- Movement from Stage II to Stage I: AVANTIFEED (Avanti Feeds Limited) — indicating reduced surveillance concern.
- ASM framework operates in conjunction with all other prevailing surveillance measures imposed by exchanges.
- Shortlisting under ASM is purely a market surveillance action and must not be construed as an adverse action against the concerned company.
Regulatory Changes
This circular is issued further to earlier circulars NSE/SURV/39265, NSE/SURV/46557, NSE/SURV/52144, NSE/SURV/58558, and NSE/SURV/64066 dated October 27, 2018; December 04, 2020; April 28, 2022; September 25, 2023; and September 20, 2024 respectively, governing the ASM framework.
Compliance Requirements
- ST-ASM Stage I securities (BUILDPRO, ESCONET, RCDL, VLEGOV): Members must apply a margin of 50% or the existing applicable margin, whichever is higher, subject to a maximum cap of 100%.
- ST-ASM Stage II securities: Margin rate of 100% or existing margin, whichever is higher, subject to a maximum cap of 100% (no new securities added this cycle).
- Enhanced margins apply on all open positions as on February 24, 2026 and on all new positions created from February 25, 2026 onwards.
- Members/brokers must ensure adequate margin collection from clients holding or initiating positions in the listed securities.
Important Dates
- February 23, 2026: Circular issued.
- February 24, 2026: Reference date for all open positions subject to revised margin requirements.
- February 25, 2026: Enhanced margin requirements become effective for ST-ASM Stage I and Stage II securities.
- February 24, 2026: Effective date for stage changes (Stage II → Stage I for AVANTIFEED).
Impact Assessment
Securities Added to ST-ASM Stage I:
| Sr. No. | Symbol | Security Name | ISIN |
|---|---|---|---|
| 1 | BUILDPRO | Shankara Buildpro Limited | INE24OJ01011 |
| 2 | ESCONET | Esconet Technologies Limited | INE0RQZ01017 |
| 3 | RCDL | Rajgor Castor Derivatives Limited | INE0BZQ01011 |
| 4 | VLEGOV | VL E-Governance & IT Solutions Limited | INE03HW01020 |
Securities Moving from Stage II to Stage I:
| Sr. No. | Symbol | Security Name | ISIN |
|---|---|---|---|
| 1 | AVANTIFEED | Avanti Feeds Limited | INE871C01038 |
The mandatory margin hike to at least 50% for Stage I securities significantly increases the cost of holding or initiating positions, likely dampening speculative activity in these counters. Retail and institutional traders with open positions as of February 24, 2026 must arrange additional collateral before trading begins on February 25, 2026. The downgrade of AVANTIFEED from Stage II to Stage I provides modest relief, reducing its required margin from 100% to 50% (or existing, whichever is higher).
Impact Justification
Directly affects trading conditions for five securities with mandatory margin hikes up to 100%; traders holding or intending to take positions must adjust collateral immediately.