Description

NSE implements Enhanced Surveillance Measure on select securities with 100% margin requirements and trading restrictions effective September 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework affecting multiple securities. New securities will attract minimum 100% margin requirements and shift from Rolling Settlement to Trade-for-Trade segment. Some securities are moving between ESM stages with varying restrictions.

Key Points

  • New securities added to ESM Stage-I with 100% margin requirement
  • Securities shifting from EQ/SM to BE/ST segment
  • Stage-II securities under Trade-for-Trade with 2% price band under Periodic Call Auction
  • Framework operates in conjunction with other surveillance measures
  • Price bands will be reinstated when securities move out of framework

Regulatory Changes

  • Enhanced Surveillance Measure implementation with staged approach
  • Minimum 100% margin on all open and new positions
  • Segment shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST)
  • Price band restrictions of 2% for Stage-II securities under Periodic Call Auction

Compliance Requirements

  • Market participants must maintain 100% margin for affected securities
  • Trading members must note segment changes for affected securities
  • Compliance with all prevailing surveillance measures remains mandatory
  • Securities under ESM subject to additional trading restrictions

Important Dates

  • September 8, 2025: Stage transitions effective, Stage-II securities under 2% price band
  • September 9, 2025: 100% margin requirement effective, segment shifts from EQ/SM to BE/ST

Impact Assessment

High Impact: The 100% margin requirement significantly increases capital requirements for trading these securities. The shift to Trade-for-Trade segment eliminates intraday trading opportunities and increases settlement obligations. Stage-II securities face additional price band restrictions limiting volatility. Market participants trading these securities will face increased costs and reduced liquidity.

Impact Justification

Significant trading restrictions and 100% margin requirements affect multiple securities with immediate implementation