Description

Four securities added to ESM Stage-I effective October 23, 2025, with 100% margin requirement and shift to Trade-for-Trade segment.

Summary

NSE has included four securities under Enhanced Surveillance Measure (ESM) Stage-I effective October 23, 2025. These securities will attract a minimum 100% margin on all open positions and will be shifted from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST). No securities are being excluded from the ESM framework or moving between stages.

Key Points

  • Four securities added to ESM Stage-I: Gujarat Raffia Industries Limited (GUJRAFFIA), Hybrid Financial Services Limited (HYBRIDFIN), Mask Investments Limited (MASKINVEST), and Tarapur Transformers Limited (TARAPUR)
  • 100% margin requirement applicable on all open positions as on October 21, 2025, and new positions from October 23, 2025
  • Securities will shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST) from October 23, 2025
  • No securities moving from Stage-I to Stage-II or vice versa
  • No securities being excluded from ESM framework
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against companies

Regulatory Changes

The Enhanced Surveillance Measure (ESM) framework continues to be applied based on specific market surveillance criteria. This circular implements routine monitoring under existing ESM regulations referenced in previous circulars (NSE/SURV/56948 dated June 02, 2023, and subsequent updates).

Compliance Requirements

  • Trading Members: Must ensure 100% margin collection on all open positions in the four listed securities as on October 21, 2025
  • New Positions: 100% margin required for all new positions created from October 23, 2025
  • Settlement Mode: Trade only on Trade-for-Trade basis (BE/ST series) from October 23, 2025
  • Clients: Should be informed about the change in trading segment and increased margin requirements
  • Queries: Contact surveillance@nse.co.in for any clarifications

Important Dates

  • October 20, 2025: Circular issued
  • October 21, 2025: 100% margin applicable on existing open positions; Securities moving to Stage-II will be under Trade-for-Trade with 2% price band under Periodic Call Auction (not applicable in this circular)
  • October 23, 2025: Effective date for 100% margin on new positions; Shift from EQ/SM to BE/ST segment for the four securities

Impact Assessment

Market Impact: High - The shift to Trade-for-Trade segment significantly reduces liquidity as intraday trading is not permitted. The 100% margin requirement substantially increases capital requirements for traders.

Trading Impact: Traders with existing positions in these four securities must arrange for 100% margin by October 21, 2025. No intraday trading will be possible from October 23, 2025.

Investor Impact: Reduced liquidity may lead to wider bid-ask spreads and difficulty in executing large orders. The measure aims to curb excessive speculation and protect investors from potential price manipulation.

Affected Securities:

  • Gujarat Raffia Industries Limited (GUJRAFFIA) - INE610B01024
  • Hybrid Financial Services Limited (HYBRIDFIN) - INE965B01022
  • Mask Investments Limited (MASKINVEST) - INE885F01015
  • Tarapur Transformers Limited (TARAPUR) - INE747K01017

Impact Justification

High impact due to immediate 100% margin requirement on open positions and shift to Trade-for-Trade segment, significantly affecting liquidity and trading for four securities.