Description

NSE updates Enhanced Surveillance Measure framework with securities moving between stages and trade-for-trade segment shifts effective September 5-8, 2025.

Summary

NSE has updated its Enhanced Surveillance Measure (ESM) framework with securities movements between different stages. Two securities (A2ZINFRA and IEL) are moving from Stage I to Stage II, while securities under ESM will shift from Rolling Settlement to Trade-for-Trade segment with 100% minimum margin requirements.

Key Points

  • No new securities added to ESM Stage I
  • A2Z Infra Engineering Limited and Indiabulls Enterprises Limited moving from Stage I to Stage II
  • No securities excluded from ESM framework
  • Securities shifting to Stage II will be under Trade-for-Trade with 2% price band under Periodic Call Auction
  • 100% minimum margin applicable on all open and new positions

Regulatory Changes

  • Securities under ESM shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  • Stage II securities subject to Trade-for-Trade with 2% price band under Periodic Call Auction
  • Enhanced margin requirements of minimum 100% on all positions

Compliance Requirements

  • Market participants must comply with 100% minimum margin requirements
  • All open positions as on September 5, 2025 subject to enhanced margin
  • New positions from September 8, 2025 onwards subject to margin requirements
  • ESM framework operates in conjunction with other prevailing surveillance measures

Important Dates

  • September 5, 2025: Stage movements effective, Trade-for-Trade with price band begins for Stage II securities
  • September 8, 2025: Trade-for-Trade segment shift effective, 100% margin requirement begins

Impact Assessment

  • Limited impact affecting specific securities under surveillance
  • Increased trading costs due to 100% margin requirements
  • Reduced liquidity for affected securities due to Trade-for-Trade mechanism
  • Price discovery constraints due to 2% price band for Stage II securities
  • Purely surveillance-driven measure, not adverse action against companies

Impact Justification

Affects specific securities with margin and trading segment changes but limited scope