Description

NSE adds Hoac Foods India Limited (HOACFOODS) to Long-Term ASM Stage I effective May 13, 2026, with 100% margin requirement applicable from May 15, 2026.

Summary

NSE’s Surveillance Department (Circular Ref. No. 349/2026, Download Ref No: NSE/SURV/74164) has updated the Long-Term Additional Surveillance Measure (ASM) framework. Hoac Foods India Limited (HOACFOODS, ISIN: INE0S6S01017) has been shortlisted for inclusion in Long-Term ASM Stage I effective May 13, 2026. A 100% margin requirement will be applicable from May 15, 2026.

Key Points

  • HOACFOODS (Hoac Foods India Limited, ISIN: INE0S6S01017) added to Long-Term ASM Stage I w.e.f. May 13, 2026
  • 100% margin applicable on all open positions as on May 14, 2026 and new positions from May 15, 2026
  • No securities moved to Stage IV in this circular (Nil)
  • No securities moved from Stage I to Stage II, Stage II to Stage III, Stage I to Stage IV, or Stage II to Stage IV (all Nil)
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ASM is purely for market surveillance and should not be construed as adverse action against the company

Regulatory Changes

This circular references and is issued under the framework established by 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 satisfying Stage IV criteria (Criteria VII) are shifted from Rolling Settlement (Series: EQ) to Trade-for-Trade segment (Series: BE) on a T+3 basis from the date of circular issuance.

Compliance Requirements

  • NSE members must apply 100% margin on all open positions in HOACFOODS as on May 14, 2026
  • Members must apply 100% margin on all new positions in HOACFOODS created from May 15, 2026 onwards
  • Members should communicate applicable margin and segment changes to their clients holding or trading in HOACFOODS
  • For queries, members may contact surveillance@nse.co.in

Important Dates

  • May 12, 2026: Circular issuance date
  • May 13, 2026: HOACFOODS inclusion in Long-Term ASM Stage I becomes effective
  • May 14, 2026: Reference date for open positions subject to 100% margin
  • May 15, 2026: 100% margin requirement becomes applicable on open and new positions

Impact Assessment

The inclusion of HOACFOODS in Long-Term ASM Stage I significantly increases the cost of trading in this security by mandating a 100% margin. This effectively restricts leveraged trading and may reduce liquidity in the stock. Existing position holders face immediate margin calls if their current margin is below 100% as of May 14, 2026. The measure is intended purely as a surveillance action and does not reflect any fundamental adverse development at the company level. No securities were moved to higher ASM stages or to Trade-for-Trade (BE series) in this update, limiting broader market disruption to the single stock affected.

Impact Justification

100% margin requirement imposed on HOACFOODS directly restricts trading activity and increases capital requirements for market participants holding or taking positions in the affected security.