Description

NSE circular announcing additions to and exclusions from the Long-Term Additional Surveillance Measure (LTASM) framework effective May 20, 2026, including new Stage-I entrants and consolidated ASM list.

Summary

NSE has issued a circular on the Applicability of Additional Surveillance Measure (ASM) effective May 20, 2026. Two securities are being added to the Long-Term ASM (LTASM) Framework Stage-I: R&B Denims Limited (RNBDENIMS) and Tejas Cargo India Limited (TEJASCARGO), with the latter being moved from the Short-Term ASM (STASM) framework. No securities are being excluded from the ASM framework, and no stage transitions are occurring in this update.

Key Points

  • Two securities added to Long-Term ASM Framework Stage-I effective May 20, 2026
  • TEJASCARGO (Tejas Cargo India Limited) is being moved from STASM to LTASM framework
  • RNBDENIMS (R&B Denims Limited) is a new addition to LTASM Stage-I
  • No securities shortlisted for Stage-IV in this update (Nil)
  • No inter-stage movements (Stage I→II, II→III, III→IV, IV→III, III→II, II→I) in this update
  • No securities excluded from the ASM framework in this update
  • A consolidated list of all securities currently under ASM framework is provided as Annexure

Regulatory Changes

  • Stage-IV securities (criteria VII) are subject to a shift from Rolling Settlement (Series: EQ) to Trade for Trade (Series: BE) on a T+3 basis, where T is the date of circular issuance
  • Securities placed under LTASM are subject to enhanced surveillance requirements including additional margin obligations

Compliance Requirements

  • Trading members must ensure compliance with revised surveillance measures for the newly added securities from May 20, 2026
  • Investors and traders holding or dealing in RNBDENIMS and TEJASCARGO must be aware of enhanced surveillance conditions applicable from the effective date
  • Brokers and clearing members should update their systems to reflect the ASM status of affected securities

Important Dates

  • Effective Date: May 20, 2026 — All changes to the ASM framework come into force
  • Circular Date: May 19, 2026

Impact Assessment

The addition of RNBDENIMS and TEJASCARGO to the Long-Term ASM Stage-I framework will result in heightened margin requirements and increased scrutiny for trading in these securities. TEJASCARGO’s transition from STASM to LTASM indicates sustained surveillance concerns. Investors in these stocks may face higher trading costs and liquidity constraints. The absence of any Stage-IV additions means no immediate Trade-for-Trade settlement shifts are triggered in this update. The consolidated ASM list continues to include a large number of securities across various stages, reflecting ongoing market surveillance activity by NSE.

Impact Justification

Directly affects trading conditions for listed securities by placing them under enhanced surveillance, restricting settlement mechanisms and increasing margin requirements for affected stocks.