Description

Updates to Enhanced Surveillance Measure framework affecting multiple securities with stage transitions effective August 21, 2025.

Summary

NSE has announced changes to the Enhanced Surveillance Measure (ESM) framework effective August 21, 2025. One new security (IWARE) enters ESM Stage-I, while one security (EXCEL) moves from Stage-I to Stage-II. The circular provides a consolidated list of 36+ securities currently under ESM framework across different stages.

Key Points

  • IWARE (Iware Supplychain Services Limited) enters ESM Stage-I effective August 21, 2025
  • EXCEL (Excel Realty N Infra Limited) moves from ESM Stage-I to Stage-II effective August 21, 2025
  • IWARE will also move from EQ/SM to BE/ST segment effective August 22, 2025
  • No securities are being excluded from the ESM framework
  • No securities are moving from Stage-II back to Stage-I
  • Consolidated list includes 36+ securities across Stage-I and Stage-II classifications

Regulatory Changes

Enhanced Surveillance Measure involves stricter monitoring and trading restrictions for securities showing unusual price movements or trading patterns. Stage-II represents more stringent surveillance compared to Stage-I.

Compliance Requirements

  • Trading members must be aware of ESM classifications for affected securities
  • Enhanced due diligence required for transactions in ESM securities
  • Additional margin requirements and position limits may apply
  • Stricter disclosure requirements for large trades

Important Dates

  • August 21, 2025: ESM stage changes become effective
  • August 22, 2025: IWARE moves from EQ/SM to BE/ST trading segment

Impact Assessment

The ESM framework aims to protect investor interests by imposing additional safeguards on securities with abnormal trading patterns. Securities under ESM face reduced liquidity due to stricter trading conditions, higher margins, and enhanced monitoring. Stage-II securities face more stringent restrictions than Stage-I, potentially affecting investor participation and price discovery mechanisms.

Impact Justification

Affects multiple securities with Enhanced Surveillance Measure stage changes, impacting trading conditions for affected stocks