Description
NSE updates Enhanced Surveillance Measure framework with securities moving between stages and exclusions, effective October 20-21, 2025.
Summary
NSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective October 20-21, 2025. No new securities are being added to ESM Stage I. Three securities (Norben Tea & Exports Limited, Pattech Fitwell Tube Components Limited, and Tankup Engineers Limited) are being moved from Stage II to Stage I. One security (AGS Transact Technologies Limited) is being excluded from the ESM framework entirely. Securities under ESM will be shifted to Trade-for-Trade segment with 100% margin requirements.
Key Points
- No new securities added to Enhanced Surveillance Measure Stage I
- No securities moving from Stage I to Stage II
- Three securities downgraded from Stage II to Stage I: NORBTEAEXP, PATTECH, TANKUP
- One security excluded from ESM framework: AGSTRA (AGS Transact Technologies Limited)
- Securities under ESM attract minimum 100% margin on all positions
- ESM securities shifted from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST)
- Stage II securities subject to Trade-for-Trade with 2% price band under Periodic Call Auction
- ESM framework operates in conjunction with other surveillance measures
Regulatory Changes
Securities Moving from Stage II to Stage I (w.e.f. October 20, 2025):
- NORBTEAEXP - Norben Tea & Exports Limited (INE369C01017)
- PATTECH - Pattech Fitwell Tube Components Limited (INE0NZW01014)
- TANKUP - Tankup Engineers Limited (INE0Z7N01017)
Securities Excluded from ESM Framework (w.e.f. October 20, 2025):
- AGSTRA - AGS Transact Technologies Limited (INE583L01…)
Segment Changes:
- Securities qualifying under ESM shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) effective October 21, 2025
- Stage II securities operate under Trade-for-Trade with 2% price band under Periodic Call Auction from October 20, 2025
Compliance Requirements
For Market Participants:
- Apply minimum 100% margin on all open positions as on October 20, 2025 for affected securities
- Apply 100% margin on new positions created from October 21, 2025
- Execute trades in Trade-for-Trade segment (BE/ST series) for ESM securities from October 21, 2025
- Comply with 2% price band restrictions for Stage II securities under Periodic Call Auction
- Note that ESM framework applies in conjunction with all other prevailing surveillance measures
Reference Circulars:
- NSE/SURV/56948 dated June 02, 2023
- NSE/SURV/57609 dated July 18, 2023
- NSE/SURV/63361 dated August 09, 2024
- NSE/SURV/64066 dated September 20, 2024
- NSE/SURV/64400 dated October 04, 2024
- NSE/SURV/69315 dated July 25, 2025
Important Dates
- October 17, 2025: Circular issued
- October 20, 2025:
- Securities moving from Stage II to Stage I become effective
- Securities excluded from ESM framework
- Stage II securities subject to 2% price band under Periodic Call Auction
- 100% margin applicable on all open positions
- October 21, 2025:
- Securities shifted to Trade-for-Trade segment (BE/ST)
- 100% margin applicable on new positions created from this date
Impact Assessment
Market Impact:
- Limited market impact as no new securities added to ESM Stage I
- Three securities (NORBTEAEXP, PATTECH, TANKUP) experience relaxed surveillance moving from Stage II to Stage I, though still subject to ESM restrictions
- AGSTRA exits ESM framework entirely, returning to normal trading conditions
- Price band for excluded securities reinstated to pre-ESM levels (subject to other surveillance measures)
Trading Impact:
- ESM securities continue to operate under Trade-for-Trade settlement, limiting intraday liquidity
- 100% margin requirement increases capital requirements for positions in ESM securities
- Stage II securities face additional 2% price band restriction under Periodic Call Auction mechanism
Compliance Impact:
- Routine surveillance update with no major procedural changes
- Members must monitor consolidated ESM list (Annexure III) for ongoing compliance
- ESM designation is surveillance-based and not an adverse action against companies
Additional Information:
- FAQ available at: https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm
- Queries can be directed to: surveillance@nse.co.in
Impact Justification
Routine surveillance measure update affecting specific securities with stage movements and exclusions. No new securities added to Stage I. Three securities downgraded from Stage II to Stage I, and one security excluded from ESM framework.