Description
NSE adds five securities to Long-Term Additional Surveillance Measure (LTASM) Stage-I effective April 30, 2026, with 100% margin requirement applicable from May 5, 2026.
Summary
NSE has shortlisted five securities under the Long-Term Additional Surveillance Measure (LTASM) Stage-I framework effective April 30, 2026, per Circular Ref. No. 310/2026 (Download Ref: NSE/SURV/73963). A 100% margin requirement will apply on all open and new positions from May 5, 2026. No securities have been shortlisted for Stage-IV, nor for movement between Stage-I to Stage-II, Stage-II to Stage-III, or Stage-I to Stage-IV.
Key Points
- Five securities added to Long-Term ASM (LTASM) Stage-I effective April 30, 2026
- 100% margin applicable from May 5, 2026 on all open positions as on May 4, 2026, and on new positions created from May 5, 2026 onwards
- No securities shortlisted for Stage-IV (Trade-for-Trade segment shift) in this circular
- ADL (Archidply Decor Limited) moved from Short-Term ASM (STASM) to LTASM framework
- CELEBRITY (Celebrity Fashions Limited) and SHARDUL (Shardul Securities Limited) satisfy criteria at BSE as well
- ASM framework operates in conjunction with all other prevailing surveillance measures
- Shortlisting is purely for market surveillance purposes and is not an adverse action against the company
Regulatory Changes
This circular is issued under the LTASM framework referencing earlier circulars: NSE/SURV/39265 (Oct 27, 2018), NSE/SURV/45111 (Jul 22, 2020), NSE/SURV/46557 (Dec 4, 2020), NSE/SURV/48506 (Jun 4, 2021), NSE/SURV/52090 (Apr 22, 2022), NSE/SURV/63362 (Aug 9, 2024), and NSE/SURV/64066 (Sep 20, 2024). Securities qualifying under Criteria VII (Stage-IV) would be shifted from Rolling Settlement (Series: EQ) to Trade-for-Trade segment (Series: BE); however, no such securities are identified in this circular.
Compliance Requirements
- NSE members must apply 100% margin on all open positions in the five listed securities as on May 4, 2026, effective May 5, 2026
- Members must apply 100% margin on all new positions created in these securities from May 5, 2026 onwards
- Members should update their risk management systems accordingly before the effective date
- For queries, members may contact surveillance@nse.co.in
Important Dates
- April 30, 2026: Securities shortlisted and included in LTASM Stage-I framework
- May 4, 2026: Reference date for open positions subject to 100% margin
- May 5, 2026: 100% margin requirement becomes effective for open and new positions
Impact Assessment
Securities Added to LTASM Stage-I (effective April 30, 2026):
| Sr. No. | Symbol | Security Name | ISIN | Note |
|---|---|---|---|---|
| 1 | ADL | Archidply Decor Limited | INE0CHO01012 | Moved from STASM to LTASM |
| 2 | CELEBRITY | Celebrity Fashions Limited | INE185H01016 | Also satisfies criteria at BSE |
| 3 | MADHAV | Madhav Marbles and Granites Limited | INE925C01016 | — |
| 4 | SHARDUL | Shardul Securities Limited | INE037B01020 | Also satisfies criteria at BSE |
| 5 | SOMATEX | Soma Textiles & Industries Limited | INE314C01013 | — |
The 100% margin requirement significantly increases the capital needed to hold or initiate positions in these securities, which typically reduces liquidity and can compress price discovery. Retail investors and traders with leveraged positions in these stocks face immediate margin calls or forced position reduction. Institutional participants will also need to ensure adequate collateral. The fact that CELEBRITY and SHARDUL satisfy ASM criteria at both NSE and BSE amplifies the impact across exchanges.
Impact Justification
Directly impacts five listed securities with 100% margin requirements, restricting trading activity and liquidity. Traders and investors holding these stocks face significant capital requirements from May 5, 2026.