Description

NSE adds two securities to Enhanced Surveillance Measure Stage I with 100% margin requirements and trade-for-trade settlement effective August 25, 2025.

Summary

NSE has issued circular 645/2025 adding two securities to Enhanced Surveillance Measure (ESM) Stage I effective August 25, 2025. The affected securities will attract 100% margin requirements and be shifted from rolling settlement to trade-for-trade segment.

Key Points

  • Two securities added to ESM Stage I: KOTYARK (Kotyark Industries Limited) and USASEEDS (Upsurge Seeds Of Agriculture Limited)
  • 100% margin requirement applies to all open positions as on August 22, 2025 and new positions from August 25, 2025
  • Securities will shift from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST)
  • No securities are being moved between stages or excluded from ESM framework
  • ESM framework operates in conjunction with other surveillance measures

Regulatory Changes

  • Addition of KOTYARK (INE0J0B01017) and USASEEDS (INE0CBM01019) to ESM Stage I
  • Segment change from EQ/SM to BE/ST for the two securities
  • Implementation of 100% margin requirements

Compliance Requirements

  • Market participants must ensure 100% margin coverage for existing and new positions in affected securities
  • Trading in these securities will be restricted to trade-for-trade basis only
  • All existing surveillance measures remain applicable

Important Dates

  • August 22, 2025: 100% margin applies to existing open positions
  • August 25, 2025: New positions subject to 100% margin, segment shift to trade-for-trade effective

Impact Assessment

  • Limited impact as only two securities are affected
  • Increased margin requirements may reduce speculative trading in these stocks
  • Trade-for-trade settlement will require full payment/delivery, reducing leverage opportunities
  • Market liquidity in these securities may decrease due to stricter trading conditions

Impact Justification

Affects specific securities with increased margin and settlement restrictions but limited to two stocks