Description

NSE announces inclusion of Modern Threads (India) Limited and Rama Telecom Limited under ST-ASM Stage I, and exclusion of Brandman Retail Limited and Gokaldas Exports Limited from ASM Framework, effective March 12-13, 2026.

Summary

NSE has issued Circular Ref. No. 185/2026 (Download Ref No: NSE/SURV/73240) announcing changes to the Short-Term Additional Surveillance Measure (ST-ASM) framework. Two securities — Modern Threads (India) Limited (MODTHREAD) and Rama Telecom Limited (RTL) — have been included under ST-ASM Stage I effective March 12, 2026, with enhanced margin requirements applicable from March 13, 2026. Additionally, two securities — Brandman Retail Limited (BRANDMAN) and Gokaldas Exports Limited (GOKEX) — have been excluded from the ASM framework effective March 12, 2026.

Key Points

  • ST-ASM Stage I Inclusions (w.e.f. March 12, 2026): Modern Threads (India) Limited (MODTHREAD, INE794W01014) and Rama Telecom Limited (RTL, INE14W901010).
  • ST-ASM Stage II Inclusions: Nil — no securities added to Stage II.
  • Stage I to Stage II Movements: Nil.
  • Stage II to Stage I Movements: Nil.
  • ASM Exclusions (w.e.f. March 12, 2026): Brandman Retail Limited (BRANDMAN, INE0XUD01014) and Gokaldas Exports Limited (GOKEX, INE887G01027).
  • ASM shortlisting is purely a market surveillance action and should not be construed as adverse action against the concerned company.

Regulatory Changes

This circular builds upon prior NSE circulars NSE/SURV/39265 (Oct 27, 2018), NSE/SURV/46557 (Dec 04, 2020), NSE/SURV/52144 (Apr 28, 2022), NSE/SURV/58558 (Sep 25, 2023), and NSE/SURV/64066 (Sep 20, 2024) on the ASM framework. The ST-ASM framework operates in conjunction with all other prevailing surveillance measures imposed by exchanges.

Compliance Requirements

  • ST-ASM Stage I securities: Members must apply a margin rate of 50% or existing applicable margin, whichever is higher, subject to a maximum cap of 100%.
  • ST-ASM Stage II securities: Members must apply a margin rate of 100% or existing applicable margin, whichever is higher, subject to a maximum cap of 100%.
  • Enhanced margins apply to all open positions as on March 12, 2026 and new positions created from March 13, 2026.
  • Members must ensure compliance with ASM provisions in conjunction with all other surveillance measures.
  • For queries, contact: surveillance@nse.co.in

Important Dates

  • March 11, 2026: Circular issued.
  • March 12, 2026: Inclusion of MODTHREAD and RTL under ST-ASM Stage I takes effect; exclusion of BRANDMAN and GOKEX from ASM takes effect.
  • March 13, 2026: Enhanced margin requirements become applicable on all open positions (as on March 12, 2026) and new positions.

Impact Assessment

MODTHREAD (Modern Threads (India) Limited) and RTL (Rama Telecom Limited) will face significantly higher trading costs due to the 50% minimum margin requirement under ST-ASM Stage I. This is likely to reduce liquidity and trading volumes in these securities as the cost of holding positions increases substantially.

BRANDMAN (Brandman Retail Limited) and GOKEX (Gokaldas Exports Limited) will benefit from the removal of ASM-related margin restrictions, potentially improving liquidity and reducing trading costs for these securities.

Brokers and trading members must immediately update their risk management systems to reflect the new margin requirements for affected securities. Retail investors holding positions in MODTHREAD or RTL may face margin calls if their existing margins fall below the newly mandated 50% threshold.

Impact Justification

Directly imposes 50% margin requirements on specific securities and excludes others from ASM, with immediate effect from March 12-13, 2026, affecting trading positions and costs for market participants.