Description

NSE shifts 7 securities to Trade for Trade segment (series BE/ST) with 5% price band effective October 16, 2025, as part of surveillance action to ensure market safety and investor protection.

Summary

NSE has issued surveillance circular 794/2025 shifting 7 securities from the Rolling segment (series EQ) to the Trade for Trade segment (series BE) with a 5% or lower price band, effective October 16, 2025. This action is taken to ensure market safety and safeguard investor interests. The affected securities will no longer be available in the rolling segment and will be settled on a trade-to-trade basis with no netting off allowed.

Key Points

  • 7 securities shifted from Rolling segment (EQ) to Trade for Trade segment (BE) effective October 16, 2025
  • Price band restriction of 5% or lower applies to all shifted securities
  • Settlement will be on trade-to-trade basis with no netting off allowed
  • Shifted securities will not be available in rolling segment (series EQ/SM)
  • Action taken based on Price Earnings Multiple, Price Variation & Market Capitalization criteria
  • One security (ZENITHSTL) alignment as per BSE action
  • AAA TECHNOLOGIES LIMITED continues in Trade for Trade segment under current review

Securities Affected

Annexure-1: Securities Moved to Trade for Trade (Effective October 16, 2025)

  1. ABMINTLLTD - ABM International Limited (INE251C01025)
  2. ORCHASP - Orchasp Limited (INE215B01022)
  3. PALREDTEC - Palred Technologies Limited (INE218G01033)
  4. AKSHAR - Akshar Spintex Limited (INE256Z01025)
  5. ISHANCH - Ishan Dyes and Chemicals Limited (INE561M01018)
  6. WEWIN - We Win Limited (INE082W01014)
  7. ZENITHSTL - Zenith Steel Pipes & Industries Limited (INE318D01020) *As per BSE

Criteria Applied: Price Earnings Multiple, Price Variation & Market Capitalization

Annexure-2: Securities Continuing in Trade for Trade

  • AAATECH - AAA Technologies Limited (INE0D0U01013) - Continues in BE/BZ series

Regulatory Changes

  • Trading series change: From EQ (Rolling) to BE (Trade for Trade) for listed securities
  • Price band restriction: Maximum 5% or lower volatility allowed
  • Settlement mechanism: Mandatory trade-to-trade settlement replaces netting off
  • Market segment availability: Securities removed from rolling segment entirely

Compliance Requirements

  • NSE Members: Take adequate precautions while trading in affected securities
  • Settlement: All trades must be settled on trade-to-trade basis - no netting off permitted
  • Trading: Only available in BE/ST series, not in EQ/SM series from effective date
  • Risk Management: Adjust position limits and margin requirements for T+T settlement
  • Client Communication: Inform clients about changed trading and settlement terms

Important Dates

  • Circular Issue Date: October 13, 2025
  • Effective Date: October 16, 2025 (Thursday)
  • Last Rolling Segment Trading: October 15, 2025
  • First Trade for Trade Trading: October 16, 2025

Impact Assessment

Market Impact:

  • Significant liquidity reduction as netting off is prohibited
  • Trading volume likely to decrease due to 5% price band restriction
  • Intraday trading strategies become non-viable for these securities
  • Increased capital requirement as each trade requires separate settlement

Operational Impact:

  • Members must ensure adequate securities/funds for each individual trade
  • Settlement cycles become more stringent with T+T mechanism
  • Position management becomes more complex without netting capability
  • Increased operational burden on clearing and settlement systems

Investor Impact:

  • Higher transaction costs due to inability to net positions
  • Limited price discovery due to restrictive 5% band
  • Reduced liquidity may widen bid-ask spreads
  • Entry and exit from positions becomes more capital intensive

Surveillance Rationale: The exchange clarifies this is purely a market surveillance action and should not be construed as adverse action against the concerned companies. The criteria indicate concerns about price volatility, earnings multiples, and market capitalization metrics triggering enhanced monitoring through Trade for Trade mechanism.

For queries, members may contact: surveillance@nse.co.in

Impact Justification

High impact as 7 securities are being moved to Trade for Trade with restrictive 5% price band, affecting liquidity and settlement. No netting off allowed, requiring T+T settlement which significantly impacts trading strategies and risk management for these stocks.