Description
NSE announces inclusion of three securities under Long-Term ASM Stage I and one security moving to Stage II, effective April 02, 2026, with 100% margin requirement from April 07, 2026.
Summary
NSE has issued Circular No. 235/2026 announcing updates to the Long-Term Additional Surveillance Measure (ASM) framework. Three securities are newly included under Stage I, and one security is being moved from Stage I to Stage II, all effective April 02, 2026. A 100% margin requirement will apply from April 07, 2026 on all open and new positions.
Key Points
- Three securities added to Long-Term ASM Stage I w.e.f. April 02, 2026: RAMASTEEL (Rama Steel Tubes Limited), SHEEL (Sheel Biotech Limited), VERTOZ (Vertoz Limited)
- One security moved from Stage I to Stage II w.e.f. April 02, 2026: SETCO (Setco Automotive Limited)
- No securities shortlisted for Stage IV, Stage II to Stage III, or Stage I to Stage IV transitions
- ASM framework operates in conjunction with all other prevailing surveillance measures
- Shortlisting is purely for market surveillance purposes and should not be construed as adverse action against the company
Regulatory Changes
This circular references and builds upon previous ASM circulars: NSE/SURV/39265, NSE/SURV/45111, NSE/SURV/46557, NSE/SURV/48506, NSE/SURV/52090, NSE/SURV/63362, and NSE/SURV/64066 dated between October 2018 and September 2024. Securities qualifying under Criteria VII (Stage IV) would be shifted from Rolling Settlement (Series: EQ) to Trade-for-Trade segment (Series: BE) on a T+3 basis, though no securities qualify for Stage IV in this circular.
Compliance Requirements
- NSE members must note the updated ASM security list and apply the 100% margin requirement accordingly
- All open positions as on April 06, 2026 and new positions from April 07, 2026 onwards must carry 100% applicable margin
- For queries, members may write to surveillance@nse.co.in
- Additional information available at: https://www.nseindia.com/regulations/additional-surveillance-measure
Important Dates
- April 02, 2026: Effective date for inclusion of RAMASTEEL, SHEEL, VERTOZ in Stage I and SETCO moving to Stage II
- April 06, 2026: Last date for existing open positions before 100% margin kicks in
- April 07, 2026: 100% margin requirement effective on all open positions and new positions
Impact Assessment
The four affected securities face significantly tightened trading conditions. The 100% margin requirement substantially increases the capital needed to hold or create positions, reducing leverage and likely impacting liquidity. SETCO’s movement to Stage II signals continued surveillance concern. Traders and investors holding or planning positions in RAMASTEEL, SHEEL, VERTOZ, and SETCO must ensure adequate capital to meet the enhanced margin requirements by April 07, 2026. The absence of any Stage IV inclusions means no securities will be shifted to the more restrictive Trade-for-Trade segment in this cycle.
Impact Justification
Directly affects trading conditions for four listed securities with 100% margin requirement and potential shift to Trade-for-Trade segment, impacting liquidity and trading strategies for affected stocks.