Description

NSE implements Enhanced Surveillance Measure for 5 securities with 100% margin requirements and trade-for-trade restrictions effective August 29, 2025.

Summary

NSE has implemented Enhanced Surveillance Measure (ESM) changes affecting 5 securities. Three securities (IZMO, NEPHROCARE, OSWALSEEDS) are being added to ESM Stage-I with 100% margin requirements, while two securities (AGSTRA, ORTINGLOBE) are being moved from Stage-I to Stage-II with stricter trade-for-trade restrictions and 2% price bands under Periodic Call Auction.

Key Points

  • 3 securities added to ESM Stage-I with minimum 100% margin requirement
  • Securities will shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) segment
  • 2 securities moved from ESM Stage-I to Stage-II with additional restrictions
  • Stage-II securities will have Trade for Trade with 2% price band under Periodic Call Auction
  • No securities are being excluded from ESM framework
  • ESM framework works in conjunction with other surveillance measures

Regulatory Changes

  • Securities under ESM Stage-I will attract minimum 100% margin on all positions
  • Shift from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  • Stage-II securities will operate under Trade for Trade with 2% price band under Periodic Call Auction
  • Enhanced surveillance purely for market surveillance purposes, not adverse action against companies

Compliance Requirements

  • Market participants must maintain 100% margin for ESM Stage-I securities
  • All open positions as on August 28, 2025, and new positions from August 29, 2025, subject to enhanced margin requirements
  • Trading members must comply with Trade-for-Trade settlement for affected securities
  • Stage-II securities subject to Periodic Call Auction with 2% price band restrictions

Important Dates

  • August 28, 2025: Stage-II securities move to Trade for Trade with 2% price band under Periodic Call Auction
  • August 29, 2025: ESM Stage-I securities shift to Trade-for-Trade segment and 100% margin requirement takes effect

Impact Assessment

High Impact: The implementation of 100% margin requirements and shift to Trade-for-Trade settlement significantly restricts trading flexibility and increases capital requirements for market participants. Stage-II restrictions with 2% price bands and Periodic Call Auction further limit trading opportunities and price discovery mechanisms for affected securities.

Impact Justification

High trading restrictions and 100% margin requirements significantly impact trading operations for affected securities