Description

NSE adds 4 securities to Enhanced Surveillance Measure Stage I with 100% margin requirements and trade-for-trade settlement effective August 1, 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework, adding 4 securities to Stage I with mandatory 100% margin requirements and trade-for-trade settlement. The affected securities will shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST) effective August 1, 2025.

Key Points

  • 4 securities added to ESM Stage I: AKIKO, OSELDEVICE, TIMESGTY, and VALIANTORG
  • 100% margin requirement applicable on all open and new positions
  • Securities marked with asterisk (*) will move from EQ/SM to BE/ST segment
  • No securities moving between Stage I and Stage II
  • No securities being excluded from ESM framework
  • ESM framework operates in conjunction with other surveillance measures

Regulatory Changes

  • Securities in ESM Stage I attract minimum 100% margin requirement
  • Shift from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  • Securities moving to Stage II would be under Trade for Trade with 2% price band under Periodic Call Auction
  • Framework applies alongside all other prevailing surveillance measures

Compliance Requirements

  • Market participants must ensure 100% margin coverage for affected securities
  • Compliance with trade-for-trade settlement requirements for shifted securities
  • Adherence to all surveillance measure conditions as implemented by exchanges
  • Contact surveillance@nse.co.in for queries

Important Dates

  • July 31, 2025: ESM Stage I implementation date
  • August 1, 2025: Effective date for 100% margin requirement and segment shift (EQ/SM to BE/ST)
  • July 31, 2025: Securities moving to Stage II would be under Periodic Call Auction with 2% price band

Impact Assessment

High Impact: The 100% margin requirement significantly increases capital requirements for trading these securities. The shift to trade-for-trade settlement eliminates netting benefits and requires full settlement, reducing liquidity and increasing transaction costs. This surveillance measure may lead to reduced trading volumes and increased volatility in affected securities. Investors holding positions in these securities face immediate margin calls and potential forced liquidation if unable to meet enhanced margin requirements.

Impact Justification

High margin requirements and trading restrictions significantly impact affected securities and their investors