Description
NSE includes Frontier Springs, Purple United Sales, and Rain Industries under ST-ASM Stage I with enhanced margin requirements effective May 14, 2026. Bhandari Hosiery and CEDAAR are excluded from ASM framework.
Summary
NSE has issued Circular No. 350/2026 (Download Ref: NSE/SURV/74165) dated May 12, 2026, notifying inclusion of three securities under Short-Term Additional Surveillance Measure (ST-ASM) Stage I effective May 13, 2026. Enhanced margin requirements apply from May 14, 2026. No securities are added to Stage II. Two securities are excluded from the ASM framework.
Key Points
- Three securities added to ST-ASM Stage I: Frontier Springs Limited (FRONTSP), Purple United Sales Limited (PURPLEUTED), and Rain Industries Limited (RAIN)
- ST-ASM Stage I margin requirement: 50% or existing margin (whichever is higher), capped at a maximum of 100%
- ST-ASM Stage II margin requirement: 100% or existing margin (whichever is higher), capped at 100%
- No securities shortlisted for Stage II inclusion or for movement between stages
- Bhandari Hosiery Exports Limited (BHANDARI) and CEDAAR are excluded from the ASM framework effective May 13, 2026
- Shortlisting is purely for market surveillance purposes and must not be construed as adverse action against the concerned company
Regulatory Changes
This circular is issued in continuation of earlier NSE circulars on ASM:
- NSE/SURV/39265 dated October 27, 2018
- NSE/SURV/46557 dated December 04, 2020
- NSE/SURV/52144 dated April 28, 2022
- NSE/SURV/58558 dated September 25, 2023
- NSE/SURV/64066 dated September 20, 2024
The ST-ASM framework operates in conjunction with all other prevailing surveillance measures imposed by exchanges from time to time.
Compliance Requirements
- Brokers/Members: Must apply enhanced margin rates on all open positions in FRONTSP, PURPLEUTED, and RAIN as on May 13, 2026, and on all new positions created from May 14, 2026
- ST-ASM Stage I securities: Collect minimum 50% margin or existing applicable margin, whichever is higher (subject to 100% cap)
- ST-ASM Stage II securities: Collect 100% margin or existing applicable margin, whichever is higher (subject to 100% cap)
- Members may refer to NSE FAQs on ASM at https://www.nseindia.com/regulations/additional-surveillance-measure for further details
- Queries may be directed to surveillance@nse.co.in
Important Dates
| Event | Date |
|---|---|
| Circular issued | May 12, 2026 |
| ST-ASM Stage I inclusion effective | May 13, 2026 |
| ASM exclusions effective | May 13, 2026 |
| Enhanced margin requirements effective on open positions | May 14, 2026 |
| Enhanced margin requirements effective on new positions | May 14, 2026 |
Impact Assessment
Stocks Affected (ST-ASM Stage I Inclusions):
| Symbol | Security Name | ISIN |
|---|---|---|
| FRONTSP | Frontier Springs Limited | INE572D01014 |
| PURPLEUTED | Purple United Sales Limited | INE0P5R01014 |
| RAIN | Rain Industries Limited | INE855B01025 |
Stocks Released (ASM Exclusions):
| Symbol | Security Name | ISIN |
|---|---|---|
| BHANDARI | Bhandari Hosiery Exports Limited | INE474E01029 |
| CEDAAR | (details truncated in source) | — |
Market Impact: Inclusion under ST-ASM Stage I significantly increases the cost of carrying or initiating positions in the affected securities by mandating a minimum 50% margin. This typically leads to reduced liquidity, higher bid-ask spreads, and potential forced liquidation of under-margined positions. Rain Industries Limited (RAIN) is a large-cap company, making this inclusion particularly notable for institutional and retail participants with significant exposure. The release of BHANDARI and CEDAAR from ASM will reduce margin burdens for holders of those securities.
Impact Justification
Direct margin enhancement to 50-100% for three stocks under ST-ASM Stage I creates immediate trading cost impact for market participants holding or seeking positions in these securities.