Description

NSE announces inclusion of 2 securities in ESM Stage-I and movement of 1 security from Stage-I to Stage-II, with 100% margin requirement effective November 03, 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework, adding two securities to ESM Stage-I and moving one security from Stage-I to Stage-II. Securities under ESM Stage-I will shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series) and attract a minimum 100% margin requirement on all positions. Stage-II securities will be under Trade-for-Trade with 2% price band under Periodic Call Auction.

Key Points

  • Two securities added to ESM Stage-I: Essar Shipping Limited (ESSARSHPNG) and Shree Tirupati Balajee FIBC Limited (TIRUPATI)
  • Tankup Engineers Limited (TANKUP) moves from ESM Stage-I to Stage-II
  • 100% margin applicable on all open positions as on October 31, 2025, and new positions from November 03, 2025
  • Securities in ESM Stage-I will shift from EQ/SM to BE/ST series (Trade-for-Trade segment)
  • Stage-II securities will have 2% price band under Periodic Call Auction
  • No securities excluded from ESM framework in this update
  • ESM is a surveillance measure and not an adverse action against companies

Regulatory Changes

Securities qualifying under ESM will be shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST). This change restricts intraday trading and requires delivery-based transactions only. The framework operates in conjunction with all other prevailing surveillance measures imposed by the Exchange.

Compliance Requirements

  • Members must ensure 100% margin is collected on all open positions in ESM securities as on October 31, 2025
  • 100% margin requirement applies to all new positions created from November 03, 2025
  • Trading members must note the segment shift from EQ/SM to BE/ST for affected securities
  • Stage-II securities will trade under Periodic Call Auction with 2% price band effective October 31, 2025
  • Market participants should refer to NSE FAQs on ESM at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm

Important Dates

  • October 30, 2025: Circular issued
  • October 31, 2025: 100% margin applicable on open positions; Stage-II securities shift to Trade-for-Trade with 2% price band under Periodic Call Auction
  • November 03, 2025: Securities shift from EQ/SM to BE/ST series; 100% margin applicable on new positions

Impact Assessment

High Impact on Affected Securities: The inclusion in ESM Stage-I severely restricts liquidity as securities move to Trade-for-Trade segment, eliminating intraday trading opportunities. The 100% margin requirement substantially increases capital requirements for traders holding positions in ESSARSHPNG and TIRUPATI.

Stage-II Impact: TANKUP moving to Stage-II faces additional restrictions with Periodic Call Auction and 2% price band, further limiting trading flexibility and price discovery.

Market Participants: Brokers and traders must adjust risk management systems to accommodate the 100% margin requirement and update trading systems to reflect segment changes. Investors in these securities will experience reduced liquidity and potentially higher transaction costs.

Reference Circulars: This circular references 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).

Impact Justification

High impact due to 100% margin requirement and shift to Trade-for-Trade segment for affected securities, significantly restricting trading and liquidity