Description

NSE announces securities moving into and between ESM stages with 100% margin requirements and trading restrictions effective August 11-12, 2025.

Summary

NSE has announced changes to Enhanced Surveillance Measure (ESM) framework affecting multiple securities. New securities will be included in ESM Stage-I with 100% margin requirements, while existing securities will move between stages. All changes involve shifting from rolling settlement to trade-for-trade segment with additional restrictions.

Key Points

  • Securities in ESM attract minimum 100% margin on all positions
  • Securities shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) segment
  • Stage-II securities operate under Trade-for-Trade with 2% price band under Periodic Call Auction
  • ESM framework operates in conjunction with other surveillance measures
  • Shortlisting is for market surveillance purposes and not adverse action against companies

Regulatory Changes

  • Two new securities (ACCENTMIC, JAINIK) added to ESM Stage-I
  • Two securities (NORBTEAEXP, TIMESGTY) moved from Stage-I to Stage-II
  • Four securities (ARISTO, ATLASCYCLE, CEREBRAINT, ELGIRUBCO) moved from Stage-II to Stage-I
  • Securities exiting framework get original price band restored unless under other surveillance measures

Compliance Requirements

  • Market participants must maintain 100% margin for ESM securities
  • Trading only allowed in Trade-for-Trade segment for affected securities
  • Stage-II securities subject to 2% price band restrictions
  • Compliance with all other prevailing surveillance measures required

Important Dates

  • August 11, 2025: Stage-II securities move to Trade-for-Trade with 2% price band under Periodic Call Auction
  • August 12, 2025: 100% margin applicable on all open positions as of August 11 and new positions; EQ/SM to BE/ST segment shift effective

Impact Assessment

High impact on affected securities due to significant trading restrictions and margin requirements. The 100% margin requirement substantially increases capital requirements for traders. Trade-for-Trade segment shift reduces liquidity and increases transaction costs. Stage-II securities face additional price band restrictions limiting price movements to 2%.

Impact Justification

Significant trading restrictions and 100% margin requirements affect multiple securities with immediate implementation