Description

NSE implements Enhanced Surveillance Measure with 100% margin requirement and trade-for-trade segment shifting for selected securities effective September 3, 2025.

Summary

NSE has updated its Enhanced Surveillance Measure (ESM) framework, adding Yash Optics & Lens Limited to Stage I ESM effective September 2025. The measure imposes a minimum 100% margin requirement on all positions and shifts securities from Rolling Settlement to Trade-for-Trade segment.

Key Points

  • Yash Optics & Lens Limited (YASHOPTICS) added to ESM Stage I
  • 100% margin requirement applies to all open and new positions
  • Securities will shift from EQ/SM series to BE/ST series (Trade-for-Trade)
  • Stage II securities will have 2% price band under Periodic Call Auction
  • No securities excluded from ESM framework in this update
  • Consolidated ESM list includes multiple securities across stages

Regulatory Changes

  • Implementation of Enhanced Surveillance Measure for identified securities
  • Shift from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  • Stage II securities subject to Periodic Call Auction with 2% price band
  • Minimum 100% margin requirement on all positions

Compliance Requirements

  • Market participants must maintain 100% margin for ESM securities
  • Trading members must adjust systems for segment changes
  • Compliance with all other prevailing surveillance measures remains mandatory
  • Members should refer to NSE FAQs for detailed ESM guidelines

Important Dates

  • September 2, 2025: ESM Stage II securities under Trade for Trade with price band effective
  • September 3, 2025: 100% margin requirement effective for all positions
  • September 3, 2025: Securities shift from EQ/SM to BE/ST series effective

Impact Assessment

The ESM implementation significantly impacts trading liquidity and operational requirements. The 100% margin requirement substantially increases capital requirements for positions in affected securities. The shift to Trade-for-Trade segment eliminates intraday trading opportunities and requires full settlement. Market participants need to adjust risk management and trading strategies for ESM securities. The measure aims to curb excessive speculation while maintaining market integrity.

Impact Justification

Mandatory 100% margin requirement and trading segment changes significantly impact trading operations and liquidity