Description

NSE circular detailing securities being included, moved, or excluded from Enhanced Surveillance Measure framework effective October 29-30, 2025.

Summary

NSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective October 29-30, 2025. Three securities (MOXSH, PENTAGON, SPRL) are being added to ESM Stage-I with 100% margin requirements and shift to Trade-for-Trade segment. One security (PVP) is moving from Stage-I to Stage-II with additional restrictions including 2% price band under Periodic Call Auction. No securities are being excluded from the framework.

Key Points

  • Three securities added to ESM Stage-I: Moxsh Overseas Educon Limited, Pentagon Rubber Limited, and Sp Refractories Limited
  • PVP Ventures Limited moving from ESM Stage-I to Stage-II with stricter surveillance
  • Minimum 100% margin applicable on all open and new positions for Stage-I securities
  • Securities shifting 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
  • No securities being excluded from ESM framework in this update
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

Securities qualifying under ESM will be shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) effective October 30, 2025. Securities moving to Stage-II will additionally be placed under Trade-for-Trade with a 2% price band under Periodic Call Auction mechanism effective October 29, 2025.

Compliance Requirements

  • Members must ensure 100% margin is maintained on all open positions as on October 29, 2025
  • 100% margin required on all new positions created from October 30, 2025 for listed securities
  • Trading members must comply with Trade-for-Trade settlement requirements for affected securities
  • Stage-II securities must be traded within 2% price band restrictions under Periodic Call Auction
  • Members should refer to consolidated list in Annexure III for complete ESM framework coverage

Important Dates

  • October 28, 2025: Circular issued
  • October 29, 2025: Stage-II securities come under Trade-for-Trade with 2% price band under Periodic Call Auction; 100% margin applicable on open positions
  • October 30, 2025: Stage-I securities shift from EQ/SM to BE/ST segment; 100% margin on new positions begins

Impact Assessment

Trading Impact: Securities moving to Trade-for-Trade segment will experience reduced liquidity as intraday trading is not permitted. The 100% margin requirement significantly increases capital requirements for market participants holding positions in these securities.

Price Impact: PVP Ventures Limited will be subject to 2% price band under Periodic Call Auction in Stage-II, which will restrict price movements and potentially impact price discovery.

Operational Impact: Market participants with existing positions in MOXSH, PENTAGON, SPRL, and PVP must ensure adequate margin coverage and adjust trading strategies to accommodate Trade-for-Trade settlement requirements.

Market Segment: This surveillance action affects four securities across different sectors and is implemented purely for market surveillance purposes, not as adverse action against the companies.

Impact Justification

High impact due to mandatory 100% margin requirements and shift to Trade-for-Trade segment affecting liquidity and trading restrictions for listed securities