Description

NSE updates Enhanced Surveillance Measure classifications, moving securities between stages and imposing 100% margin requirements effective October 7, 2025.

Summary

NSE has announced changes to Enhanced Surveillance Measure (ESM) classifications effective October 6-7, 2025. Three securities (DIVINEHIRA, PROZONER, PSRAJ) are being newly included in ESM Stage-I with 100% margin requirements. One security (VIJIFIN) is being moved from Stage-I to Stage-II, while four securities (AGSTRA, KRISHIVAL, ORTINGLOBE, OSELDEVICE) are being moved from Stage-II back to Stage-I. Securities in ESM will be shifted from Rolling Settlement to Trade-for-Trade segment, with Stage-II securities under Periodic Call Auction with 2% price band.

Key Points

  • New inclusions in ESM Stage-I: Divine Hira Jewellers Limited, Prozone Realty Limited, and P S Raj Steels Limited
  • Minimum 100% margin required on all open positions as on October 6, 2025 and new positions from October 7, 2025
  • Securities qualifying under ESM shifted from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST)
  • Stage-II securities subject to Trade-for-Trade with 2% price band under Periodic Call Auction
  • ESM framework applies in conjunction with all other prevailing surveillance measures
  • Shortlisting under ESM is purely for market surveillance and not an adverse action against the company

Regulatory Changes

Stage-I New Inclusions (w.e.f. October 6, 2025):

  • Divine Hira Jewellers Limited (DIVINEHIRA, ISIN: INE0NA501011)
  • Prozone Realty Limited (PROZONER, ISIN: INE195N01013)
  • P S Raj Steels Limited (PSRAJ, ISIN: INE0XUS01012)

Stage-I to Stage-II Movement:

  • Viji Finance Limited (VIJIFIN, ISIN: INE159N01027)

Stage-II to Stage-I Movement:

  • AGS Transact Technologies Limited (AGSTRA, ISIN: INE583L01014)
  • Krishival Foods Limited (KRISHIVAL, ISIN: INE0GGO01015)
  • ORTIN GLOBAL LIMITED (ORTINGLOBE, ISIN: INE749B01020)
  • Osel Devices Limited (OSELDEVICE, ISIN: INE0RMF01018)

Compliance Requirements

  • Trading members must ensure minimum 100% margin on all open positions in newly included ESM Stage-I securities as on October 6, 2025
  • Minimum 100% margin applicable on all new positions created from October 7, 2025
  • Securities shifting to Stage-II will trade under Trade-for-Trade with 2% price band under Periodic Call Auction from October 6, 2025
  • Securities in Stage-I will shift from EQ/SM series to BE/ST series effective October 7, 2025
  • Market participants must comply with ESM framework in conjunction with all other surveillance measures
  • For queries, contact: surveillance@nse.co.in

Important Dates

  • October 3, 2025: Circular issued
  • October 6, 2025:
    • 100% margin applicable on all open positions in newly included securities
    • Stage-II securities move to Trade-for-Trade with 2% price band under Periodic Call Auction
    • Stage movement between Stage-I and Stage-II becomes effective
  • October 7, 2025:
    • Securities shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST)
    • 100% margin applicable on all new positions

Impact Assessment

Trading Impact:

  • Three securities moving to Trade-for-Trade segment will experience reduced liquidity as intraday trading will not be possible
  • 100% margin requirement significantly increases capital requirements for traders holding positions in affected securities
  • Stage-II securities face additional restriction of 2% price band under Periodic Call Auction, limiting price discovery

Market Participants:

  • Traders with existing positions in DIVINEHIRA, PROZONER, and PSRAJ must arrange for 100% margin by October 6, 2025
  • Reduced trading flexibility for all ESM securities due to Trade-for-Trade mechanism
  • Four securities (AGSTRA, KRISHIVAL, ORTINGLOBE, OSELDEVICE) will see relaxation from Stage-II to Stage-I restrictions

Investor Sentiment:

  • ESM inclusion typically signals heightened regulatory scrutiny and potential price volatility concerns
  • While not an adverse action against companies, market perception may be negative
  • Enhanced margins may deter speculative activity and improve price stability

Impact Justification

Affects trading mechanism and margin requirements for multiple securities with immediate effect, shifting from rolling settlement to trade-for-trade and imposing 100% margin requirements