Description
NSE announces securities being included in or moving between stages of Enhanced Surveillance Measure framework, effective October 14-15, 2025.
Summary
NSE has issued updates to the Enhanced Surveillance Measure (ESM) framework. Five securities are being included in ESM Stage-I, one security is moving from Stage-I to Stage-II, and no securities are being excluded. Securities under ESM Stage-I will shift from rolling settlement to trade-for-trade segment and attract 100% margin. Securities moving to Stage-II will be under trade-for-trade with 2% price band under periodic call auction.
Key Points
- Five securities added to ESM Stage-I: Century Extrusions Limited, Nagreeka Capital & Infrastructure Limited, Nikita Papers Limited, Spacenet Enterprises India Limited, and Take Solutions Limited
- Divine Power Energy Limited (DPEL) moving from ESM Stage-I to Stage-II
- No securities being excluded from ESM framework
- Securities in Stage-I will shift from EQ/SM series to BE/ST series (trade-for-trade)
- 100% minimum margin applicable on all open and new positions for Stage-I securities
- ESM is a surveillance measure and not an adverse action against companies
Regulatory Changes
Securities qualifying under ESM will be shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST). Securities moving to Stage-II will operate under trade-for-trade with a 2% price band under periodic call auction mechanism.
Compliance Requirements
- Market participants must ensure 100% margin on all open positions as of October 14, 2025, and new positions created from October 15, 2025, for Stage-I securities
- Trading members must adjust to trade-for-trade settlement mechanism for affected securities
- ESM framework operates in conjunction with all other prevailing surveillance measures
Important Dates
- October 13, 2025: Circular issued
- October 14, 2025: Securities moving to Stage-II come under trade-for-trade with 2% price band under periodic call auction
- October 15, 2025: 100% margin requirement becomes effective for Stage-I securities; shift from EQ/SM to BE/ST series effective
Impact Assessment
Market Impact: High - The shift to trade-for-trade segment significantly impacts liquidity for affected securities as intraday trading is not permitted. The 100% margin requirement substantially increases capital requirements for traders.
Operational Impact: Trading members need to adjust their systems and inform clients about the change in trading mechanism. Existing positions will face increased margin requirements.
Investor Impact: Investors holding these securities will face reduced liquidity and higher margin costs. The 2% price band for Stage-II securities limits price volatility but also restricts trading flexibility.
Securities Details
ESM Stage-I Additions (Effective October 15, 2025)
- CENTEXT - Century Extrusions Limited (INE281A01026)
- NAGREEKCAP - Nagreeka Capital & Infrastructure Limited (INE245I01016)
- NIKITA - Nikita Papers Limited (INE0FLF01015)
- SPCENET - Spacenet Enterprises India Limited (INE970N01027)
- TAKE - Take Solutions Limited (INE142I01023)
Stage-I to Stage-II Movement (Effective October 14, 2025)
- DPEL - Divine Power Energy Limited (INE0SCO01019)
Exclusions
Nil
Additional Information
For detailed information on ESM framework, members can refer to NSE’s FAQ page at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm. Queries can be directed to surveillance@nse.co.in.
This circular references previous circulars: NSE/SURV/56948 (June 02, 2023), NSE/SURV/57609 (July 18, 2023), NSE/SURV/63361 (August 09, 2024), NSE/SURV/64066 (September 20, 2024), NSE/SURV/64400 (October 04, 2024), and NSE/SURV/69315 (July 25, 2025).
Impact Justification
Affects trading mechanism and margin requirements for multiple securities, shifting them to trade-for-trade segment with 100% margin requirements