Description

NSE includes AVG Logistics, Balkrishna Paper Mills, and Semac Construction under ST-ASM Stage I effective March 20, 2026, with 50% margin requirements applicable from March 23, 2026.

Summary

NSE has issued Circular No. 209/2026 (Download Ref No: NSE/SURV/73377) dated March 19, 2026, announcing the inclusion of three securities under the Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective March 20, 2026. Additionally, Modern Threads (India) Limited is excluded from the ASM Framework effective the same date. No securities have been placed under ST-ASM Stage II, nor are there any stage transitions in this circular.

Key Points

  • Three securities — AVG Logistics Limited (AVG), Balkrishna Paper Mills Limited (BALKRISHNA), and Semac Construction Limited (SEMAC) — are included under ST-ASM Stage I w.e.f. March 20, 2026.
  • ST-ASM Stage I imposes a margin rate of 50% or existing margin, whichever is higher (capped at 100%).
  • ST-ASM Stage II margin rate is 100% or existing margin, whichever is higher (capped at 100%) — no new securities added to Stage II in this circular.
  • Modern Threads (India) Limited (MODTHREAD) is excluded from the ASM Framework w.e.f. March 20, 2026.
  • ASM shortlisting is purely a market surveillance action and should not be construed as an adverse action against the concerned company.
  • This circular is in continuation of earlier circulars: NSE/SURV/39265 (Oct 27, 2018), NSE/SURV/46557 (Dec 4, 2020), NSE/SURV/52144 (Apr 28, 2022), NSE/SURV/58558 (Sep 25, 2023), and NSE/SURV/64066 (Sep 20, 2024).

Regulatory Changes

The ASM framework criteria have been applied to identify securities meeting thresholds for short-term surveillance concern. The current circular updates the list of securities under ST-ASM without introducing new framework rules. The applicable margin structure remains:

  • ST-ASM Stage I: 50% margin or existing margin, whichever is higher (max 100%)
  • ST-ASM Stage II: 100% margin or existing margin, whichever is higher (max 100%)

Compliance Requirements

  • NSE Members must apply the revised margin rates for the affected securities on all open positions as on March 20, 2026, and on new positions created from March 23, 2026.
  • Members should ensure trading systems and risk frameworks reflect updated margin requirements for AVG, BALKRISHNA, and SEMAC.
  • The ASM framework applies in conjunction with all other prevailing surveillance measures imposed by the exchanges.
  • For queries, members may contact: surveillance@nse.co.in

Important Dates

  • March 19, 2026: Circular issuance date.
  • March 20, 2026: Effective date for inclusion of AVG, BALKRISHNA, SEMAC under ST-ASM Stage I; effective date for exclusion of MODTHREAD from ASM Framework.
  • March 23, 2026: New margin rates (50% for Stage I) apply on all open positions as on March 20, 2026, and on all new positions created from this date.

Impact Assessment

  • AVG Logistics Limited (AVG), Balkrishna Paper Mills Limited (BALKRISHNA), and Semac Construction Limited (SEMAC) will face increased margin requirements of at least 50%, raising the cost of holding or creating positions and potentially reducing liquidity in these stocks.
  • Traders and investors holding positions in these securities must arrange additional margin by March 23, 2026, or risk forced liquidation.
  • Modern Threads (India) Limited (MODTHREAD) is relieved from ASM restrictions, which may improve its trading liquidity and reduce margin burden for its holders.
  • No securities are placed under the more restrictive Stage II (100% margin) in this circular, limiting broader market disruption.
  • The circular affects a small set of securities and is unlikely to have systemic market impact, but individual stock volatility and trading volumes may be affected.

Impact Justification

Directly affects trading conditions for specific securities by imposing elevated margin requirements (50%-100%), restricting trading activity and increasing cost of holding positions.