Description

NSE circular announcing addition of 2 securities to ESM Stage I with 100% margin requirement and trade-for-trade restrictions effective August 13, 2025.

Summary

NSE has announced the inclusion of 2 securities under Enhanced Surveillance Measure (ESM) Stage I effective August 12-13, 2025. The affected securities will attract minimum 100% margin on all positions and be shifted from rolling settlement to trade-for-trade segment.

Key Points

  • 2 securities added to ESM Stage I: HT Media Limited and Jay Bharat Maruti Limited
  • 100% margin requirement on all open and new positions
  • Securities will shift from EQ/SM series to BE/ST series (trade-for-trade)
  • No securities are being excluded from ESM framework
  • No securities are moving between ESM stages
  • ESM operates in conjunction with other surveillance measures

Regulatory Changes

  • Securities under ESM Stage I will be moved 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 (though none are moving to Stage II currently)

Compliance Requirements

  • Market participants must ensure 100% margin coverage for positions in affected securities
  • Trading in these securities will be restricted to trade-for-trade basis only
  • Members must comply with enhanced surveillance framework requirements

Important Dates

  • August 12, 2025: ESM Stage I applicability begins
  • August 13, 2025: Securities shift from EQ/SM to BE/ST series and 100% margin requirement on new positions

Impact Assessment

Trading Impact: Securities will face reduced liquidity due to trade-for-trade restrictions and higher capital requirements due to 100% margin. Market Impact: Limited scope affecting only 2 securities, so minimal overall market impact. Investor Impact: Higher capital requirements may reduce speculative trading in these securities, potentially leading to price stabilization.

Impact Justification

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