Description
NSE adds Trust Fintech Limited to ESM Stage I framework effective October 16, 2025, with 100% margin requirement and shift to Trade-for-Trade segment.
Summary
NSE has issued Circular No. 798/2025 updating the Enhanced Surveillance Measure (ESM) framework. Trust Fintech Limited (Symbol: TRUST, ISIN: INE0SWN01019) has been added to ESM Stage I effective October 15, 2025. The security will shift from Rolling Settlement segment (EQ/SM series) to Trade-for-Trade segment (BE/ST series) on October 16, 2025, with a minimum 100% margin requirement on all open and new positions.
Key Points
- Trust Fintech Limited added to ESM Stage I framework
- 100% margin requirement applies to all open positions as on October 15, 2025
- 100% margin requirement applies to all new positions created from October 16, 2025
- Security shifts from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST) effective October 16, 2025
- No securities are moving between ESM stages (Stage I to Stage II or vice versa)
- No securities are being excluded from ESM framework
- Consolidated list includes existing securities: Aarey Drugs & Pharmaceuticals Limited, ASL Industries Limited, and Bafna Pharmaceuticals Limited in Stage II
- Securities shifting to Stage II will be under Trade-for-Trade with 2% price band under Periodic Call Auction
Regulatory Changes
The ESM framework continues to operate in conjunction with all other prevailing surveillance measures imposed by NSE. The shortlisting is purely for market surveillance purposes and should not be construed as adverse action against the company. 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).
Compliance Requirements
- NSE Members must ensure 100% margin is maintained on all open positions in Trust Fintech Limited as on October 15, 2025
- NSE Members must apply 100% margin on all new positions in Trust Fintech Limited from October 16, 2025
- Trading in Trust Fintech Limited must be conducted only in Trade-for-Trade segment (BE/ST series) from October 16, 2025
- Market participants must comply with all other prevailing surveillance measures alongside ESM framework
- Members can refer to FAQs at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm for detailed information
- Queries should be directed to surveillance@nse.co.in
Important Dates
- October 14, 2025: Circular issued
- October 15, 2025: 100% margin requirement becomes applicable on all open positions; securities shifting to Stage II move to Periodic Call Auction with 2% price band
- October 16, 2025: 100% margin requirement applies to new positions; Trust Fintech Limited shifts from EQ/SM to BE/ST segment; ESM changes become fully effective
Impact Assessment
High Impact on Trust Fintech Limited: The addition to ESM Stage I significantly impacts trading in Trust Fintech Limited shares. The 100% margin requirement substantially increases capital requirements for traders and investors holding positions. The shift to Trade-for-Trade segment eliminates intraday trading opportunities and requires mandatory delivery of shares, severely restricting liquidity. These measures are designed to curb excessive speculation and volatility but will likely result in reduced trading volumes and wider bid-ask spreads. Existing position holders must arrange for full margin by October 15, 2025, or risk forced square-off. The surveillance action, while not punitive to the company itself, signals heightened regulatory scrutiny of the security’s trading patterns.
Impact Justification
Addition to ESM Stage I requires immediate 100% margin on all positions and restricts trading to Trade-for-Trade segment, significantly impacting liquidity and trading for Trust Fintech Limited.