Description

NSE circular regarding securities being included in or moving within the Enhanced Surveillance Measure framework, effective November 3-4, 2025.

Summary

NSE has issued updates to the Enhanced Surveillance Measure (ESM) framework. Three securities (CCCL, RICHA, SHANTHALA) have been included in ESM Stage-I and will attract a minimum 100% margin effective November 4, 2025. These securities will shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST). Four securities (BAFNAPH, CURAA, KAYA, MVKAGRO) are moving from Stage-II back to Stage-I. Securities moving to Stage-II will be under Trade-for-Trade with 2% price band under Periodic Call Auction from November 3, 2025.

Key Points

  • Three securities newly shortlisted for ESM Stage-I: Consolidated Construction Consortium Limited (CCCL), Richa Info Systems Limited (RICHA), and Shanthala FMCG Products Limited (SHANTHALA)
  • 100% minimum margin applicable on all open positions as on November 3, 2025, and new positions from November 4, 2025
  • Securities shifting from EQ/SM series to BE/ST series (Trade-for-Trade) effective November 4, 2025
  • Four securities moving from ESM Stage-II to Stage-I: BAFNAPH, CURAA, KAYA, MVKAGRO
  • No securities moving from Stage-I to Stage-II in this update
  • Securities eligible to move out of ESM framework listed in Annexure II (not detailed in provided content)
  • 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 framework continues to be applied based on criteria established in previous circulars (NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315). Securities qualifying under ESM are shifted from Rolling Settlement to Trade-for-Trade segment. Securities moving to Stage-II will be subject to Trade-for-Trade with 2% price band under Periodic Call Auction mechanism. Price bands for securities exiting the framework will be reinstated to pre-ESM levels, subject to no other surveillance measures being applicable.

Compliance Requirements

  • Market participants must ensure compliance with 100% margin requirements for securities in ESM Stage-I
  • Margins apply to both existing open positions (as on November 3, 2025) and new positions created from November 4, 2025
  • Trading members must adjust systems to handle Trade-for-Trade settlement for affected securities
  • Members should note that ESM framework operates alongside other surveillance measures
  • Market participants should refer to the consolidated list in Annexure III for complete view of securities under ESM

Important Dates

  • November 3, 2025: Securities moving to Stage-II come under Trade-for-Trade with 2% price band under Periodic Call Auction; 100% margin applicable on all open positions
  • November 4, 2025: Newly included ESM Stage-I securities shift from EQ/SM to BE/ST series; 100% margin on new positions begins

Impact Assessment

The inclusion of three securities in ESM Stage-I will significantly impact their liquidity and trading dynamics. The mandatory 100% margin requirement will substantially increase capital requirements for traders holding positions in CCCL, RICHA, and SHANTHALA. The shift to Trade-for-Trade segment eliminates intraday trading opportunities and requires full delivery, further constraining liquidity. For the four securities moving from Stage-II back to Stage-I (BAFNAPH, CURAA, KAYA, MVKAGRO), this represents a relative easing of restrictions, though they remain under enhanced surveillance. The measures are designed to curb excessive speculation and protect investor interests in securities exhibiting abnormal price movements or trading patterns.

Impact Justification

Securities moving to ESM Stage-I will attract 100% margin and shift to Trade-for-Trade segment, significantly impacting trading and liquidity for affected stocks.