Enhanced Surveillance Measure (ESM) - Addition of 4 Securities to Stage I

Description

NSE adds 4 securities to ESM Stage I effective October 8, 2025, with segment change to BE/ST from October 9, 2025. Consolidated ESM list now includes 61 securities across Stage I and Stage II.

Summary

NSE has placed 4 securities under Enhanced Surveillance Measure (ESM) Stage I effective October 8, 2025. These securities will also be transferred from EQ/SM segment to BE/ST segment from October 9, 2025. No securities are being moved between stages or excluded from the ESM framework. The consolidated ESM list comprises 61 securities - 34 in Stage I and 27 in Stage II.

Key Points

• 4 new securities added to ESM Stage I: AAA Technologies Limited, Arihant Academy Limited, Parin Enterprises Limited, and Sigma Solve Limited
• Segment change from EQ/SM to BE/ST effective October 9, 2025 for all 4 securities
• No securities moving from Stage I to Stage II or vice versa
• No securities being excluded from ESM framework
• Total 61 securities under ESM surveillance (27 in Stage II, 34 in Stage I)

Regulatory Changes

Enhanced Surveillance Measure imposes additional restrictions on identified securities including:

• 100% upfront margin requirements
• Trade-for-trade settlement (no intraday squaring off)
• Physical delivery obligations
• Segment transfer to BE/ST series for Stage I securities

Compliance Requirements

• Trading members must collect 100% upfront margins from clients for ESM securities
• All trades in ESM securities subject to compulsory delivery
• Investors must settle trades through physical delivery of shares
• No margin trading facility or derivatives available for ESM securities

Important Dates

• October 8, 2025: ESM Stage I applicability effective for 4 new securities
• October 9, 2025: Segment change from EQ/SM to BE/ST effective

Impact Assessment

Market Impact: High - The transfer to BE/ST segment significantly restricts liquidity and trading activity. Investors holding these securities face mandatory delivery obligations and cannot engage in intraday trading.

Investor Impact: High - Existing shareholders may face difficulty in exiting positions due to reduced liquidity. New investors require full upfront payment with no leverage options.

Operational Impact: Medium - Trading members must update systems to enforce 100% margin collection and ensure trade-for-trade settlement for these securities.

Securities Added to ESM Stage I

Impact Justification

Addition to ESM Stage I with immediate segment change to BE/ST restricts trading and signals regulatory concerns about price volatility or compliance issues in these securities.