Applicability of Short-Term Additional Surveillance Measure (ST-ASM) - February 2026

Description

NSE circular shortlisting securities under Short-Term ASM (ST-ASM) Stage I and Stage II with enhanced margin requirements effective February 26, 2026. Three securities added to Stage I; one security moved from Stage II to Stage I.

Summary

NSE has issued Circular No. 143/2026 (Download Ref No: NSE/SURV/72960) dated February 24, 2026, identifying securities for inclusion, movement, and exclusion under the Short-Term Additional Surveillance Measure (ST-ASM) framework effective February 25–26, 2026. Three securities are newly added to ST-ASM Stage I, one security moves from Stage II back to Stage I, and Stage II has no new inclusions.

Key Points

• Three securities — AFIL, DEEDEV, and REXPIPES — have been shortlisted for inclusion under ST-ASM Stage I effective February 25, 2026.
• No securities have been shortlisted for ST-ASM Stage II inclusion.
• No securities are moving from Stage I to Stage II.
• OMFURN (Omfurn India Limited) moves from ST-ASM Stage II to Stage I effective February 25, 2026.
• ST-ASM Stage I margin: 50% or existing margin, whichever is higher (capped at 100%), applicable from February 26, 2026.
• ST-ASM Stage II margin: 100% or existing margin, whichever is higher (capped at 100%), applicable from February 26, 2026.
• ASM framework operates in conjunction with all other prevailing surveillance measures.
• Shortlisting under ASM is purely for market surveillance purposes and should not be construed as an adverse action against the concerned company.

Regulatory Changes

This circular is issued further to earlier ASM circulars: NSE/SURV/39265 (October 27, 2018), NSE/SURV/46557 (December 4, 2020), NSE/SURV/52144 (April 28, 2022), NSE/SURV/58558 (September 25, 2023), and NSE/SURV/64066 (September 20, 2024). The ST-ASM framework continues to apply enhanced margin requirements to securities meeting specific surveillance criteria.

Compliance Requirements

• All NSE members must apply the enhanced margin requirements for the affected securities from February 26, 2026.
• For ST-ASM Stage I securities (AFIL, DEEDEV, REXPIPES): collect margin at 50% or existing applicable margin, whichever is higher (maximum 100%), on all open positions as of February 25, 2026 and all new positions from February 26, 2026.
• For ST-ASM Stage II securities: collect margin at 100% or existing applicable margin, whichever is higher (maximum 100%).
• Members should note OMFURN’s downgrade from Stage II to Stage I and adjust margin collection accordingly.
• Members may refer to NSE FAQs on ASM at https://www.nseindia.com/regulations/additional-surveillance-measure for further details.
• Queries can be directed to surveillance@nse.co.in.

Important Dates

• February 24, 2026: Circular issued.
• February 25, 2026: Effective date for inclusion/movement of securities into respective ST-ASM stages.
• February 26, 2026: Enhanced margin requirements come into force for all open positions (as of Feb 25, 2026) and new positions in affected securities.

Impact Assessment

AFIL (Akme Fintrade (India) Limited | INE916Y01027): Added to ST-ASM Stage I. Trading costs increase due to 50% minimum margin requirement, likely to reduce liquidity and increase volatility.

DEEDEV (DEE Development Engineers Limited | INE841L01016): Added to ST-ASM Stage I. Similar impact — elevated margin requirements may deter speculative activity and reduce trading volumes.

REXPIPES (Rex Pipes And Cables Industries Limited | INE00D001018): Added to ST-ASM Stage I. Enhanced margins effective from February 26, 2026.

OMFURN (Omfurn India Limited | INE338Y01016): Moved from ST-ASM Stage II to Stage I — a partial relaxation. Margin requirement reduces from 100% to 50% minimum, potentially improving liquidity and reducing trading costs for market participants.

Overall market impact is moderate-to-high for participants holding positions in these specific securities. The circular reinforces NSE’s ongoing surveillance activity and does not reflect any fundamental adverse findings about the listed companies.

Impact Justification

Directly imposes enhanced margin requirements (50%-100%) on specific securities effective Feb 26, 2026, with immediate trading cost implications for members holding or taking positions in the listed stocks.