Description

NSE announces applicability of Short-Term ASM for select securities effective May 15-18, 2026, with Smartlink Holdings Limited added to Stage I and multiple securities excluded from the ASM framework.

Summary

NSE has issued Circular No. 359/2026 (Ref: NSE/SURV/74211) dated May 14, 2026, announcing the applicability of Short-Term Additional Surveillance Measure (ST-ASM) for specified securities. Smartlink Holdings Limited (SMARTLINK) has been included under ST-ASM Stage I effective May 15, 2026. No securities have been added to or moved within Stage II. Additionally, four securities — Arunaya Organics Limited, IFB Agro Industries Limited, Lloyds Enterprises Limited, and Manomay — are being excluded from the ASM framework effective May 15, 2026.

Key Points

  • Smartlink Holdings Limited (INE178C01020) added to ST-ASM Stage I w.e.f. May 15, 2026
  • No securities added to ST-ASM Stage II (Nil)
  • No securities moving from Stage I to Stage II (Nil)
  • No securities moving from Stage II to Stage I (Nil)
  • Four securities excluded from ASM framework w.e.f. May 15, 2026: ARUNAYA, IFBAGRO, LLOYDSENT, MANOMAY
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ASM is purely for market surveillance purposes and not an adverse action against the company

Regulatory Changes

This circular is issued further to earlier Exchange Circulars: NSE/SURV/39265 (Oct 27, 2018), NSE/SURV/46557 (Dec 04, 2020), NSE/SURV/52144 (Apr 28, 2022), NSE/SURV/58558 (Sep 25, 2023), and NSE/SURV/64066 (Sep 20, 2024). The ST-ASM framework remains unchanged; this update applies existing provisions to newly qualifying securities.

Compliance Requirements

  • ST-ASM Stage I (SMARTLINK): Applicable margin rate shall be 50% or existing margin, whichever is higher, subject to a maximum cap of 100%
  • Margin applies to all open positions as on May 15, 2026 and new positions created from May 18, 2026
  • NSE members must ensure compliance with the enhanced margin requirements for affected securities
  • For queries, members may contact surveillance@nse.co.in

Important Dates

  • May 14, 2026: Circular issued
  • May 15, 2026: Inclusion/exclusion of securities in ST-ASM framework takes effect
  • May 18, 2026: Enhanced margin requirements become applicable on open positions (as of May 15) and all new positions

Impact Assessment

The circular has a targeted impact on traders and investors holding or trading in SMARTLINK (Smartlink Holdings Limited). The 50% minimum margin requirement under Stage I will increase the cost of holding positions in this security, potentially reducing liquidity and trading volumes. Four securities (ARUNAYA, IFBAGRO, LLOYDSENT, MANOMAY) being removed from ASM will see normalized margin requirements restored, which may improve their trading activity. The overall market impact is limited given the small number of securities involved.

Impact Justification

Affects a small number of securities with increased margin requirements; routine surveillance action with no systemic market-wide impact.