Description

NSE circular announcing securities shortlisted under Long Term Additional Surveillance Measure (ASM) framework, with 100% margin requirement effective May 21, 2026. SKP Bearing Industries Limited added to Stage I.

Summary

NSE has announced the applicability of the Long Term Additional Surveillance Measure (ASM) framework for select securities effective May 19, 2026. SKP Bearing Industries Limited (Symbol: SKP, ISIN: INE0KZA01016) has been shortlisted under Long Term ASM Stage I. A 100% margin requirement will be applicable from May 21, 2026 on all open positions as on May 20, 2026 and all new positions created thereafter.

Key Points

  • SKP Bearing Industries Limited (SKP) added to Long Term ASM Framework Stage I w.e.f. May 19, 2026
  • 100% margin applicable on all open and new positions from May 21, 2026
  • No securities shortlisted for Stage IV, Stage I to Stage II, Stage II to Stage III, Stage I to Stage IV, or Stage II to Stage IV transitions
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance purposes and should not be construed as adverse action against the company

Regulatory Changes

This circular references and operates under the framework established by prior NSE circulars: NSE/SURV/39265 (Oct 27, 2018), NSE/SURV/45111 (Jul 22, 2020), NSE/SURV/46557 (Dec 04, 2020), NSE/SURV/48506 (Jun 04, 2021), NSE/SURV/52090 (Apr 22, 2022), NSE/SURV/63362 (Aug 09, 2024), and NSE/SURV/64066 (Sep 20, 2024). Securities qualifying under Criteria VII (Stage IV) would be shifted from Rolling Settlement (Series: EQ) to Trade-for-Trade segment (Series: BE), though no securities qualify for this in the current circular.

Compliance Requirements

  • NSE members must ensure 100% margin is collected on all open positions in ASM-listed securities as on May 20, 2026
  • Members must collect 100% margin on all new positions in ASM-listed securities from May 21, 2026 onwards
  • Members should refer to FAQs on the NSE website for detailed framework guidance
  • Queries may be directed to surveillance@nse.co.in

Important Dates

  • May 18, 2026: Circular issuance date
  • May 19, 2026: Effective date for inclusion of SKP Bearing Industries Limited in Long Term ASM Stage I
  • May 20, 2026: Cut-off date for open positions subject to 100% margin from May 21
  • May 21, 2026: 100% margin requirement becomes applicable on all open and new positions

Impact Assessment

The inclusion of SKP Bearing Industries Limited in Long Term ASM Stage I significantly increases the cost of trading in this security by mandating 100% margin. This restricts leveraged trading and may reduce liquidity and trading volumes in SKP. The measure is intended to enhance market integrity and protect investors from heightened volatility or risk associated with the security. Traders and investors holding or planning to take positions in SKP must ensure adequate capital to meet the 100% margin requirement from May 21, 2026.

Impact Justification

100% margin requirement imposed on affected securities from May 21, 2026; SKP Bearing Industries Limited added to Long Term ASM Stage I, significantly impacting trading conditions for the stock.