Description

NSE announces movement of securities between ESM stages and new inclusions, with ASL Industries moving to Stage II and nine securities moving from Stage II to Stage I effective August 4-5, 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework with securities movements between stages. ASL Industries Limited moves from Stage I to Stage II, while nine securities move from Stage II to Stage I. Securities under ESM attract minimum 100% margin and shift to Trade-for-Trade segment.

Key Points

  • No new securities added to ESM Stage I
  • ASL Industries Limited (ASLIND) moves to ESM Stage II with Trade-for-Trade and 2% price band under Periodic Call Auction
  • Nine securities move from Stage II to Stage I with reduced restrictions
  • All ESM securities shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST)
  • Minimum 100% margin applies to all open and new positions

Regulatory Changes

  • Securities in Stage II will trade under Periodic Call Auction with 2% price band
  • Trade-for-Trade settlement mandatory for all ESM securities
  • Price bands will be reinstated to pre-ESM levels when securities exit the framework
  • ESM operates in conjunction with other surveillance measures

Compliance Requirements

  • Members must ensure 100% margin for ESM securities
  • All ESM securities must be traded in Trade-for-Trade segment
  • Stage II securities subject to Periodic Call Auction restrictions
  • Market participants should monitor consolidated ESM list (Annexure III)

Important Dates

  • August 4, 2025: Stage movements effective, Stage II securities under Periodic Call Auction
  • August 5, 2025: 100% margin requirement and Trade-for-Trade segment shift effective

Impact Assessment

Moving to Stage II (Higher Restrictions):

  • ASLIND: ASL Industries Limited - faces stricter trading conditions with Periodic Call Auction

Moving to Stage I (Reduced Restrictions):

  • AAREYDRUGS: Aarey Drugs & Pharmaceuticals Limited
  • BROOKS: Brooks Laboratories Limited
  • CREATIVEYE: Creative Eye Limited
  • HECPROJECT: HEC Infra Projects Limited
  • HYBRIDFIN: Hybrid Financial Services Limited
  • KAYA: Kaya Limited
  • MACPOWER: Macpower CNC Machines Limited
  • MAL: Mangalam Alloys Limited
  • PURPLEUTED: Purple United Sales Limited

The framework is a market surveillance tool and not an adverse action against companies. Investors should expect reduced liquidity and higher margin requirements for affected securities.

Impact Justification

Affects trading conditions for 10 securities with margin and settlement changes