Description

NSE announces movement of securities under Enhanced Surveillance Measure framework with new inclusions, stage transitions, and trade-for-trade requirements effective August 13-14, 2025.

Summary

NSE has updated its Enhanced Surveillance Measure (ESM) framework, introducing new securities under surveillance, moving existing securities between stages, and implementing stricter trading conditions. The changes include minimum 100% margin requirements and shift from rolling settlement to trade-for-trade segment for affected securities.

Key Points

  • MIRC Electronics Limited newly included in ESM Stage-I with immediate effect
  • United Polyfab Gujarat Limited moves from ESM Stage-I to Stage-II
  • Securities under ESM Stage-II will trade under Periodic Call Auction with 2% price band
  • All ESM securities shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) segment
  • Minimum 100% margin required on all open and new positions
  • No securities excluded from ESM framework in this update

Regulatory Changes

  • Securities qualifying under ESM moved from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  • Stage II securities placed under Trade for Trade with 2% price band under Periodic Call Auction
  • Enhanced margin requirements of minimum 100% imposed on affected securities
  • Framework operates in conjunction with all other prevailing surveillance measures

Compliance Requirements

  • Market participants must ensure compliance with 100% margin requirements for ESM securities
  • Trading in affected securities restricted to Trade-for-Trade segment only
  • Stage II securities subject to Periodic Call Auction mechanism with price band restrictions
  • Members must monitor and adjust positions according to new settlement procedures

Important Dates

  • August 13, 2025: ESM Stage transitions effective, Stage II securities under Periodic Call Auction begins
  • August 14, 2025: 100% margin requirement effective on all open positions and new positions, EQ/SM to BE/ST segment shift effective

Impact Assessment

High Impact: The implementation affects trading liquidity, margin requirements, and settlement procedures for multiple securities. The shift to trade-for-trade segment eliminates intraday trading opportunities and requires full payment/delivery. The 100% margin requirement significantly increases capital requirements for traders and investors in these securities. Stage II securities face additional restrictions through periodic call auction mechanism, further limiting trading flexibility.

Impact Justification

Affects trading mechanics, margin requirements, and settlement procedures for multiple securities with immediate implementation