Description

NSE updates Enhanced Surveillance Measure framework with securities moving between ESM stages effective October 10, 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework effective October 10, 2025. One security (Mcleod Russel India Limited) has been added to ESM Stage-I, and two securities (Docmode Health Technologies Limited and Panache Digilife Limited) are moving from Stage-I to Stage-II. No securities are being excluded from the ESM framework or moving from Stage-II to Stage-I. The consolidated list includes 35 securities across both ESM stages.

Key Points

  • Mcleod Russel India Limited (MCLEODRUSS) added to ESM Stage-I effective October 10, 2025
  • MCLEODRUSS will move from EQ/SM segment to BE/ST segment effective October 13, 2025
  • Docmode Health Technologies Limited (DHTL) moving from ESM Stage-I to Stage-II
  • Panache Digilife Limited (PANACHE) moving from ESM Stage-I to Stage-II
  • No securities being excluded from ESM framework
  • No securities moving from Stage-II back to Stage-I
  • Total 29 securities in ESM Stage-II
  • At least 6 securities in ESM Stage-I (consolidated list partially shown)

Regulatory Changes

The ESM framework continues to apply graduated surveillance measures based on market behavior. Securities in higher ESM stages face increased restrictions including higher margin requirements and tighter price bands. Movement between stages occurs based on continued monitoring of trading patterns and compliance parameters.

Compliance Requirements

  • Trading members must ensure compliance with ESM framework requirements for affected securities
  • Higher margin requirements apply for securities in ESM stages
  • Price bands and trading restrictions as per ESM stage apply
  • Surveillance measures must be implemented for all listed securities in the consolidated ESM list
  • Market participants must adjust trading strategies for securities moving to stricter ESM stages

Important Dates

  • October 10, 2025: Effective date for ESM stage movements and new additions
  • October 13, 2025: MCLEODRUSS moves from EQ/SM to BE/ST segment

Impact Assessment

The movement of securities between ESM stages impacts liquidity and trading conditions. Securities moving to Stage-II face stricter surveillance with higher margins and potentially reduced price bands, which may decrease trading volumes. The addition of MCLEODRUSS to ESM Stage-I and its subsequent move to BE/ST segment indicates heightened regulatory scrutiny. Traders and investors in the 35 securities under ESM framework should expect continued monitoring and potential further restrictions if price and volume patterns remain concerning. The framework serves as a protective measure to prevent market manipulation and excessive speculation.

Impact Justification

Affects multiple securities under surveillance framework with stage movements requiring traders to adjust strategies for higher margin and price band restrictions.