Description

NSE announces movement of securities across ESM stages and new inclusions with 100% margin requirements effective August 19, 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 affected securities will be shifted from Rolling Settlement to Trade-for-Trade segment effective August 19, 2025.

Key Points

  • NDL Ventures Limited added to ESM Stage-I with 100% margin requirement
  • R.S. Software moving from ESM Stage-I to Stage-II under Periodic Call Auction with 2% price band
  • Seven securities moving from ESM Stage-II back to Stage-I
  • All ESM securities shifted from EQ/SM series to BE/ST series (Trade-for-Trade)
  • 100% margin applies to all open positions as of August 18, 2025 and new positions from August 19, 2025

Regulatory Changes

  • Securities under ESM Stage-II will trade under Periodic Call Auction mechanism with 2% price band
  • Trade-for-Trade segment implementation for all ESM securities
  • Enhanced margin requirements of minimum 100% for ESM Stage-I securities
  • Price band restoration for securities exiting the framework

Compliance Requirements

  • Market participants must ensure adequate margins for ESM securities
  • Compliance with Trade-for-Trade settlement requirements
  • Adherence to price band restrictions for Stage-II securities
  • Monitor consolidated list of securities under ESM framework

Important Dates

  • August 18, 2025: ESM Stage movements effective, Stage-II securities under Periodic Call Auction
  • August 19, 2025: 100% margin requirement effective, Trade-for-Trade segment shift effective

Impact Assessment

High Impact: The implementation of 100% margin requirements and Trade-for-Trade restrictions significantly limits liquidity and increases trading costs for affected securities. The shift to Periodic Call Auction for Stage-II securities further restricts trading frequency. Market participants holding positions in these securities face increased capital requirements and reduced trading flexibility.

Impact Justification

Significant trading restrictions including 100% margin requirements and trade-for-trade segment movement affecting multiple securities