NSE has issued Circular No. 335/2026 (Download Ref: NSE/SURV/74107) placing four securities under Long Term Additional Surveillance Measure (ASM) Stage-I and moving one security from Stage-I to Stage-II, effective May 8, 2026. A 100% margin requirement will apply on all open and new positions from May 12, 2026.

Key Points

• Four securities shortlisted for inclusion in Long Term ASM Stage-I w.e.f. May 8, 2026: HFCL (moved from STASM), HGM, Khadim India, and TECIL Chemicals.
• One security (GRCL - Gayatri Rubbers And Chemicals Limited) moved from Long Term ASM Stage-I to Stage-II w.e.f. May 8, 2026.
• Applicable margin rate of 100% on all open positions as on May 11, 2026 and new positions from May 12, 2026.
• No securities shortlisted for Stage-IV, Stage-II to Stage-III, or Stage-I to Stage-IV transitions.
• ASM framework operates in conjunction with all other prevailing surveillance measures.
• Shortlisting is purely for market surveillance purposes and not an adverse action against the companies.

Regulatory Changes

This circular references and operates under the framework established by prior 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 meeting criteria VII (Stage IV) would be shifted from Rolling Settlement (EQ series) to Trade-for-Trade segment (BE series), though no securities qualify for this transition in the current circular.

Compliance Requirements

• All NSE members must note the updated ASM list and apply 100% margin on affected securities.
• Members must ensure compliance with the Long Term ASM provisions for HFCL, HGM, KHADIM, TECILCHEM (Stage-I), and GRCL (Stage-II) from the respective effective dates.
• Members should refer to NSE FAQs on ASM at https://www.nseindia.com/regulations/additional-surveillance-measure for detailed framework provisions.
• Queries may be directed to surveillance@nse.co.in.

Important Dates

• May 8, 2026: Effective date for inclusion of HFCL, HGM, KHADIM, TECILCHEM in Long Term ASM Stage-I and GRCL’s move to Stage-II.
• May 11, 2026: Reference date for open positions subject to 100% margin requirement.
• May 12, 2026: 100% margin requirement becomes applicable on all open positions (as of May 11) and all new positions.

Impact Assessment

Traders and investors holding or planning to trade in HFCL, HGM, KHADIM, TECILCHEM, and GRCL face significantly increased capital requirements due to the 100% margin rule. This will reduce leverage and may decrease liquidity in these securities. HFCL’s transition from Short Term ASM (STASM) to Long Term ASM (LTASM) signals continued surveillance concern. HGM and TECILCHEM satisfy criteria at BSE as well, indicating cross-exchange surveillance coordination. The absence of any Stage-IV inclusions means no securities are being shifted to Trade-for-Trade settlement in this round, limiting the most restrictive impact.