Description

NSE implements Enhanced Surveillance Measure on select securities with 100% margin requirements and trade-for-trade settlement effective September 5, 2025.

Summary

NSE has implemented Enhanced Surveillance Measure (ESM) on select securities effective September 4-5, 2025. Three securities will be newly included in ESM Stage-I with 100% margin requirements and shift from rolling settlement to trade-for-trade segment. One security will move from Stage-I to Stage-II under periodic call auction with 2% price band.

Key Points

  • Three new securities added to ESM Stage-I: AGNI (Agni Green Power Limited), KAUSHALYA (Kaushalya Infrastructure Development Corporation Limited), and SRD (Shankar Lal Rampal Dye-Chem Limited)
  • SADHNANIQ (Sadhana Nitrochem Limited) moves from ESM Stage-I to Stage-II
  • 100% margin requirement applies to all open and new positions
  • Securities shift from EQ/SM series to BE/ST series (trade-for-trade)
  • Stage-II securities operate under periodic call auction with 2% price band
  • No securities excluded from ESM framework in this update

Regulatory Changes

  • Enhanced Surveillance Measure framework continues with stricter monitoring
  • Trade-for-trade settlement replaces rolling settlement for affected securities
  • Periodic call auction mechanism for Stage-II securities
  • Integration with other prevailing surveillance measures

Compliance Requirements

  • Market participants must maintain 100% margin for affected securities
  • Trading restricted to trade-for-trade segment for newly included securities
  • Compliance with periodic call auction rules for Stage-II securities
  • Adherence to 2% price band limits for Stage-II trading

Important Dates

  • September 4, 2025: ESM Stage changes become effective, Stage-II securities under periodic call auction
  • September 5, 2025: New Stage-I securities attract 100% margin, shift to trade-for-trade segment

Impact Assessment

  • Trading Impact: Significant liquidity constraints due to trade-for-trade settlement and 100% margin requirements
  • Market Participants: Increased capital requirements and reduced trading flexibility
  • Price Discovery: Limited price movement in Stage-II securities due to 2% price band and periodic call auction
  • Investor Behavior: Likely reduced retail participation due to higher margin requirements and settlement restrictions

Impact Justification

Significant trading restrictions with 100% margin requirements and shift to trade-for-trade segment affecting multiple securities