Description

NSE announces movement of MIRC Electronics Limited from ESM Stage-I to Stage-II effective October 17, 2025, with trade-for-trade restrictions and 100% margin requirements.

Summary

NSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective October 17, 2025. MIRC Electronics Limited (Symbol: MIRCELECTR, ISIN: INE831A01028) is being moved from ESM Stage-I to Stage-II. No new securities are being added to Stage-I, and no securities are being excluded from the ESM framework. The consolidated ESM list continues to include securities like Aarey Drugs & Pharmaceuticals Limited, ASL Industries Limited, Bafna Pharmaceuticals Limited, and Cura Technologies Limited in Stage-II.

Key Points

  • No new securities added to ESM Stage-I
  • MIRC Electronics Limited moved from Stage-I to Stage-II
  • No securities moved from Stage-II to Stage-I
  • No securities excluded from ESM framework
  • Securities under ESM attract minimum 100% margin on all positions
  • Securities shifted from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) segment
  • Stage-II securities placed under Trade-for-Trade with 2% price band under Periodic Call Auction
  • ESM framework operates in conjunction with other prevailing surveillance measures

Regulatory Changes

MIRC Electronics Limited will be subject to enhanced restrictions under Stage-II of the ESM framework, including:

  • Shift to Trade-for-Trade segment (Series: BE/ST) from Rolling Settlement
  • 2% price band restriction under Periodic Call Auction mechanism
  • Minimum 100% margin requirement on all open and new positions

The 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

  • Trading members must apply 100% margin on MIRCELECTR effective October 20, 2025
  • Margin applies to all open positions as on October 17, 2025
  • Margin applies to all new positions created from October 20, 2025
  • Securities can only be traded in Trade-for-Trade segment (no intraday trading)
  • Settlement will be on T+1 basis with delivery mandatory
  • Members should note ESM is a surveillance measure and not an adverse action against the company

Important Dates

  • October 16, 2025: Circular issue date
  • October 17, 2025: Effective date for Stage-II movement (Trade-for-Trade with 2% price band under Periodic Call Auction begins)
  • October 20, 2025: Effective date for 100% margin requirement and shift to BE/ST segment

Impact Assessment

Market Impact: Limited market impact as only one security is moving to a more restrictive stage. No new securities are being added to ESM Stage-I, indicating stable market surveillance conditions.

Trading Impact: MIRCELECTR investors will face:

  • Reduced liquidity due to Trade-for-Trade restrictions
  • No intraday trading allowed
  • Higher capital requirements due to 100% margin and delivery obligations
  • Limited price movement (2% price band) under Periodic Call Auction
  • Potential reduction in speculative trading activity

Investor Impact: Existing shareholders of MIRC Electronics will need to account for reduced trading flexibility and higher transaction costs. The ESM classification is surveillance-based and does not reflect company fundamentals.

Impact Justification

Limited scope with only one security moving to Stage-II ESM. Affects MIRC Electronics with stricter trading restrictions but no new securities added to Stage-I.