Description

NSE circular updating Enhanced Surveillance Measure classifications with securities moving between stages and new inclusions effective July 28-29, 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework affecting multiple securities with stage transitions and new inclusions. Three securities are newly included in ESM Stage-I with 100% margin requirements, one security moves from Stage-I to Stage-II, and five securities are downgraded from Stage-II to Stage-I. The changes are effective July 28-29, 2025.

Key Points

  • Three new securities added to ESM Stage-I: Indo Borax & Chemicals, Tejas Cargo India, and Winny Immigration & Education Services
  • VCL (Vaxtex Cotfab Limited) moves from Stage-I to Stage-II with stricter surveillance
  • Five securities downgraded from Stage-II to Stage-I including ABS Marine Services, Agni Green Power, Everest Industries, Flexituff Ventures, and Ginni Filaments
  • Securities in ESM attract minimum 100% margin on all positions
  • ESM securities shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST)

Regulatory Changes

  • Enhanced Surveillance Measure classifications updated across multiple securities
  • Stage-II securities operate under Trade-for-Trade with 2% price band under Periodic Call Auction
  • Margin requirements of 100% minimum applied to ESM securities
  • Trading segment changes from Rolling Settlement to Trade-for-Trade for affected securities

Compliance Requirements

  • Members must ensure 100% margin compliance for ESM securities
  • Trading restrictions apply through Trade-for-Trade mechanism
  • Price band limitations of 2% for Stage-II securities under Periodic Call Auction
  • Market participants must adapt to conjunction with other prevailing surveillance measures

Important Dates

  • July 28, 2025: Stage transitions effective, Stage-II securities under Periodic Call Auction with 2% price band
  • July 29, 2025: 100% margin requirement effective on all open positions and new positions, EQ/SM to BE/ST segment shift

Impact Assessment

The circular affects trading flexibility and margin requirements for the specified securities. New ESM inclusions will face increased margin costs and reduced liquidity through Trade-for-Trade mechanisms. Securities moving to Stage-II face additional price band restrictions. The surveillance framework operates as a market monitoring tool rather than adverse action against companies, but impacts trading dynamics and investor accessibility for affected securities.

Impact Justification

Affects specific securities with enhanced surveillance requirements, margin changes, and trading segment shifts