Description

NSE announces inclusion of 4 securities under Enhanced Surveillance Measure Stage-I with 100% margin requirement effective September 4, 2025.

Summary

The National Stock Exchange has announced the inclusion of four securities under the Enhanced Surveillance Measure (ESM) Stage-I framework. These securities will attract a minimum 100% margin requirement on all positions and will be shifted from Rolling Settlement segment to Trade-for-Trade segment effective September 4, 2025. The ESM framework is a surveillance measure aimed at securities with abnormal price movements or volumes.

Key Points

  • Four securities added to ESM Stage-I: Elgi Rubber Company Limited, Sabar Flex India Limited, Saroja Pharma Industries India Limited, and Wise Travel India Limited
  • 100% margin requirement on all open positions as on September 3, 2025, and new positions from September 4, 2025
  • Securities shifting from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST)
  • Securities moving to Stage II will be under Trade for Trade with 2% price band under Periodic Call Auction
  • No securities moved between stages or excluded from ESM framework in this circular

Regulatory Changes

The Enhanced Surveillance Measure framework continues to be implemented as per previous circulars NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315. The framework operates in conjunction with all other prevailing surveillance measures imposed by the Exchange. The shortlisting is purely based on market surveillance and should not be construed as adverse action against the concerned companies.

Compliance Requirements

  • All NSE members must ensure minimum 100% margin on affected securities from September 4, 2025
  • Members must note the shift of securities from Rolling Settlement to Trade-for-Trade segment
  • Open positions as on September 3, 2025, will attract the enhanced margin requirement
  • Members should inform clients about the trading restrictions and margin requirements
  • Compliance with all other prevailing surveillance measures continues to be mandatory

Important Dates

  • September 3, 2025: Securities in Stage II move to Trade for Trade with 2% price band under Periodic Call Auction
  • September 3, 2025: Cut-off date for open positions subject to 100% margin
  • September 4, 2025: Effective date for 100% margin requirement on new positions
  • September 4, 2025: Securities shift from EQ/SM to BE/ST series

Impact Assessment

The inclusion of these four securities under ESM Stage-I will significantly impact their trading dynamics. The 100% margin requirement effectively eliminates leverage trading, potentially reducing speculative activity and volumes. The shift to Trade-for-Trade segment means no intraday trading will be permitted, requiring mandatory delivery for all trades. This may lead to reduced liquidity and wider bid-ask spreads. Investors holding positions in these securities will need to arrange for additional margin to maintain their positions. The measure aims to curb excessive speculation and price manipulation while protecting investor interests.

Impact Justification

Significant trading restrictions with 100% margin requirement and shift to Trade-for-Trade segment affecting liquidity and trading dynamics