Description
NSE circular notifying applicability of Long Term Additional Surveillance Measure (ASM) with 100% margin requirement effective May 19, 2026. All listed securities in the annexure show Nil entries across all ASM stages.
Summary
NSE has issued Circular Ref. No. 358/2026 (Download Ref No: NSE/SURV/74210) dated May 14, 2026 regarding the applicability of the Long Term Additional Surveillance Measure (ASM) framework. The circular references prior exchange circulars dating from October 2018 through September 2024. The annexure accompanying this circular lists Nil securities under all ASM stages effective May 15, 2026.
Key Points
- Long Term ASM framework is being applied per the criteria established in prior circulars (NSE/SURV/39265, NSE/SURV/45111, NSE/SURV/46557, NSE/SURV/48506, NSE/SURV/52090, NSE/SURV/63362, NSE/SURV/64066)
- Applicable margin rate shall be 100% effective May 19, 2026 on all open positions as on May 18, 2026 and new positions created from May 19, 2026 onwards
- Securities qualifying under Criteria VII (Stage IV) shall be shifted from Rolling Settlement (Series: EQ) to Trade-for-Trade segment (Series: BE) effective May 19, 2026
- The annexure lists Nil securities across all ASM stages (Stage I new entrants, Stage IV new entrants, Stage I to II, Stage II to III, Stage I to IV, Stage II to IV)
- ASM framework operates in conjunction with all other prevailing surveillance measures
- Shortlisting under ASM is purely for market surveillance purposes and should not be construed as adverse action against any company
Regulatory Changes
No new regulatory changes introduced. This circular applies the existing Long Term ASM framework criteria. The framework provisions include:
- 100% margin on open positions for securities included in Long Term ASM
- Mandatory shift to Trade-for-Trade (BE series) for Stage IV securities under Criteria VII
- T+3 basis shift from Rolling Settlement to Trade-for-Trade (T-day being date of circular issuance)
Compliance Requirements
- NSE members must note securities listed in the annexure (currently Nil) for ASM applicability
- Members must ensure 100% margin compliance on affected securities from May 19, 2026
- For queries: surveillance@nse.co.in
- Reference FAQs available at https://www.nseindia.com/regulations/additional-surveillance-measure
Important Dates
- May 14, 2026: Circular issuance date
- May 15, 2026: Effective date for ASM stage inclusions/transitions per annexure
- May 18, 2026: Last date for existing open positions before 100% margin applies
- May 19, 2026: 100% margin requirement takes effect; Stage IV securities shift to Trade-for-Trade (BE series)
Impact Assessment
The current circular has no immediate stock-specific impact as all annexure entries are Nil — no securities have been shortlisted under any Long Term ASM stage in this issuance. The circular serves as a periodic update to the ASM framework notification process. Market participants should monitor future ASM circulars for actual security inclusions. The framework itself, when securities are included, imposes significant trading restrictions including 100% margin requirements and potential segment shifts that can materially reduce liquidity and increase trading costs for affected securities.
Impact Justification
Circular establishes ASM framework applicability with 100% margin requirement and potential Trade-for-Trade segment shifts, but the annexure lists Nil securities across all stages, meaning no stocks are currently affected by this circular.