Description

NSE updates Enhanced Surveillance Measure framework with new securities additions and stage transitions effective August 6-7, 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework effective August 6-7, 2025. One new security (AGROPHOS) has been added to ESM Stage-I, while three securities (DHARAN, VIJIFIN, VINEETLAB) are moving from Stage-I to Stage-II. No securities are being excluded from the framework.

Key Points

  • AGROPHOS (Agro Phos India Limited) added to ESM Stage-I with 100% margin requirement
  • Three securities transitioning from Stage-I to Stage-II under periodic call auction
  • Securities under ESM shifted from Rolling Settlement to Trade-for-Trade segment
  • Stage-II securities subject to 2% price band under Periodic Call Auction
  • Framework operates in conjunction with other surveillance measures

Regulatory Changes

  • Securities qualifying under ESM shifted from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST)
  • Stage-II securities placed under Trade for Trade with 2% price band under Periodic Call Auction
  • Minimum 100% margin applicable on all open and new positions

Compliance Requirements

  • Market participants must comply with 100% margin requirements for ESM securities
  • All open positions as of August 6, 2025 and new positions from August 7, 2025 subject to enhanced margins
  • Trading restrictions apply through Trade-for-Trade mechanism

Important Dates

  • August 6, 2025: Stage transitions effective, Stage-II securities under Periodic Call Auction
  • August 7, 2025: Segment shifts from EQ/SM to BE/ST effective, 100% margin requirement starts

Impact Assessment

Stage-I Addition:

  • AGROPHOS: Subject to 100% margin and Trade-for-Trade settlement

Stage-I to Stage-II Transitions:

  • DHARAN (DHARAN INFRA-EPC LIMITED)
  • VIJIFIN (Viji Finance Limited)
  • VINEETLAB (Vineet Laboratories Limited)

Current ESM Securities:

  • ABMINTLLTD (ABM International Limited) remains in Stage-II

The measures are implemented for market surveillance purposes and should not be construed as adverse action against the companies. Trading liquidity may be reduced due to Trade-for-Trade settlement and higher margin requirements.

Impact Justification

Affects specific securities with trading restrictions and margin requirements but limited scope