Description

NSE updates Enhanced Surveillance Measure framework with new securities added to ESM stages and movements between stages effective September 10, 2025.

Summary

NSE has updated its Enhanced Surveillance Measure (ESM) framework effective September 10, 2025. Two new securities (INFLUX and SALSTEEL) have been added to ESM Stage-I, while two securities (PATTECH and TANKUP) have been moved from Stage-I to Stage-II. Additionally, INFLUX and SALSTEEL will move from EQ/SM to BE/ST segment effective September 11, 2025.

Key Points

  • 2 securities added to ESM Stage-I: Influx Healthtech Limited and S.A.L. Steel Limited
  • 2 securities moved from ESM Stage-I to Stage-II: Pattech Fitwell Tube Components Limited and Tankup Engineers Limited
  • No securities moved from Stage-II to Stage-I
  • No securities excluded from ESM framework
  • Total of 62 securities currently under ESM framework (28 in Stage-II, 34 in Stage-I)
  • Segment changes for newly added securities from EQ/SM to BE/ST

Regulatory Changes

The ESM framework continues to monitor securities based on price volatility, trading volumes, and other market parameters. Securities under ESM are subject to additional surveillance measures including:

  • Enhanced disclosure requirements
  • Stricter position limits
  • Additional margin requirements
  • Regular monitoring of trading activities

Compliance Requirements

  • Market participants must comply with enhanced surveillance measures for listed securities
  • Brokers must ensure appropriate risk management for ESM securities
  • Companies under ESM must maintain enhanced compliance standards
  • Trading members must monitor client positions more closely for ESM securities

Important Dates

  • September 10, 2025: ESM stage changes become effective
  • September 11, 2025: Segment change from EQ/SM to BE/ST for INFLUX and SALSTEEL

Impact Assessment

The addition of securities to ESM Stage-I indicates increased regulatory scrutiny due to concerning trading patterns. Movement to Stage-II represents escalation of surveillance measures. These changes will result in:

  • Increased compliance burden for affected companies
  • Enhanced monitoring requirements for market participants
  • Potential impact on liquidity for affected securities
  • Stricter trading conditions including higher margins and position limits

Impact Justification

Regular surveillance measure updates affecting specific securities with trading restrictions