Description

NSE adds two securities (CHANDAN, OMAXAUTO) to ESM Stage I with 100% margin requirement effective August 4, 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework, adding two securities to Stage I with enhanced margin requirements. The affected securities will face a minimum 100% margin requirement and be shifted from Rolling Settlement to Trade-for-Trade segment.

Key Points

  • Two securities added to ESM Stage I: Chandan Healthcare Limited (CHANDAN) and Omax Autos Limited (OMAXAUTO)
  • 100% minimum margin requirement applicable on all open and new positions
  • Securities will shift from EQ/SM series to BE/ST series (Trade-for-Trade)
  • No securities are being removed from the ESM framework
  • No movement between Stage I and Stage II
  • ESM framework operates in conjunction with other surveillance measures

Regulatory Changes

  • Enhanced margin requirements: minimum 100% margin on affected securities
  • Segment shift: from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST)
  • Stage II securities operate under Trade-for-Trade with 2% price band under Periodic Call Auction

Compliance Requirements

  • Market participants must ensure compliance with 100% margin requirements
  • Brokers and members must adjust systems for segment changes
  • Positions must comply with new margin requirements from effective dates

Important Dates

  • August 1, 2025: ESM Stage I inclusion effective for margin requirements on existing positions
  • August 4, 2025: Segment shift from EQ/SM to BE/ST effective; 100% margin on new positions

Impact Assessment

Market Impact: Limited to two specific securities with enhanced surveillance requirements. The 100% margin requirement will significantly increase capital requirements for trading these stocks, likely reducing speculative activity. The shift to Trade-for-Trade segment will eliminate intraday trading opportunities, focusing on delivery-based transactions only.

Impact Justification

Medium importance as it affects specific securities with enhanced surveillance measures including margin increases and segment shifts