Description
NSE places 12 securities under ST-ASM Stage I with enhanced margin requirements of 50% (or higher) effective May 13, 2026. No securities added to Stage II.
Summary
NSE has shortlisted 12 securities for inclusion under the Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective May 12, 2026. Enhanced margin requirements of 50% (or existing margin, whichever is higher, capped at 100%) will apply from May 13, 2026. No securities were added to ST-ASM Stage II, and no securities were moved from Stage I to Stage II in this circular.
Key Points
- 12 securities added to ST-ASM Stage I effective May 12, 2026
- Margin rate for Stage I: 50% or existing margin, whichever is higher (max 100%)
- Margin rate for Stage II: 100% or existing margin, whichever is higher (max 100%)
- Enhanced margins apply to all open positions as of May 12, 2026 and new positions from May 13, 2026
- Stage II inclusions: Nil; Stage I to Stage II movement: Nil
- ASM framework applies alongside all other prevailing surveillance measures
- Shortlisting is a market surveillance action and should not be construed as an adverse action against the company
Regulatory Changes
The circular is issued under the existing ST-ASM framework established via prior 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). No new regulatory framework is introduced; this circular applies the existing ST-ASM criteria to newly qualifying securities.
Compliance Requirements
- Members/Brokers: Must apply enhanced margin requirements for the listed securities from May 13, 2026 on all open positions held as of May 12, 2026 and all new positions created from May 13, 2026
- Stage I margin: Collect 50% margin or existing margin, whichever is higher, subject to a maximum of 100%
- Traders/Investors: Should be aware of increased margin obligations when trading in any of the 12 listed securities
ST-ASM Stage I Securities (Effective May 12, 2026)
| Sr. No. | Symbol | Security Name | ISIN |
|---|---|---|---|
| 1 | AVALON | Avalon Technologies Limited | INE0LCL01028 |
| 2 | BBOX | Black Box Limited | INE676A01027 |
| 3 | ELPROINTL | Elpro International Limited | INE579B01039 |
| 4 | FSL | Firstsource Solutions Limited | INE684F01012 |
| 5 | MERCANTILE | Mercantile Ventures Limited | INE689O01013 |
| 6 | MICEL | MIC Electronics Limited | INE287C01037 |
| 7 | MIRCELECTR | MIRC Electronics Limited | INE831A01028 |
| 8 | PARACABLES | Paramount Communications Limited | INE074B01023 |
| 9 | PARAMOUNT | Paramount Dye Tec Limited | INE0TG801013 |
| 10 | QUICKHEAL | Quick Heal Technologies Limited | INE306L01010 |
| 11 | SPEB | Speb Adhesives Limited | INE1CW901027 |
| 12 | TAMBOLIIN | Tamboli Industries Limited | INE864J01012 |
Important Dates
- May 11, 2026: Circular issued
- May 12, 2026: Effective date for ST-ASM Stage I inclusion; enhanced margins applicable on all open positions held at end of day
- May 13, 2026: Enhanced margin requirements enforced on new positions created from this date
Impact Assessment
Traders and investors holding positions in any of the 12 securities will face significantly increased margin requirements, potentially leading to forced position liquidations if margin calls cannot be met. The securities span diverse sectors including technology (AVALON, FSL, QUICKHEAL, BBOX), electronics (MICEL, MIRCELECTR), cables/communications (PARACABLES), chemicals/adhesives (SPEB), and others. Liquidity in these counters may reduce as market participants factor in higher cost of carrying positions. The measure is purely surveillance-driven and does not reflect any fundamental adverse development at these companies.
Impact Justification
Directly affects trading in 12 listed securities by imposing enhanced margin requirements of up to 100%, impacting traders with open positions from May 12, 2026 and new positions from May 13, 2026.