Description

NSE circular announcing securities moving between ESM stages with 100% margin requirement and trade-for-trade segment shift effective November 7, 2025.

Summary

NSE has issued surveillance circular NSE/SURV/71130 regarding the Enhanced Surveillance Measure (ESM) framework. One security (Saakshi Medtech and Panels Limited) is moving from ESM Stage I to Stage II effective November 6, 2025. All securities under ESM will attract minimum 100% margin requirement and be shifted to Trade-for-Trade segment from November 7, 2025. No new securities are being added to ESM Stage I, and no securities are being excluded from the ESM framework.

Key Points

  • No new securities are being added to ESM Stage I
  • One security (SAAKSHI - Saakshi Medtech and Panels Limited, ISIN: INE0PSK01027) is moving from ESM Stage I to Stage II
  • No securities are moving from ESM Stage II to Stage I
  • No securities are being excluded from the ESM framework
  • Minimum 100% margin applies to all open positions as of November 6, 2025 and new positions from November 7, 2025
  • Securities in ESM will shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST) effective November 7, 2025
  • Securities moving to Stage II will be under Trade for Trade with 2% price band under Periodic Call Auction from November 6, 2025
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

The circular reinforces the existing Enhanced Surveillance Measure (ESM) framework established through previous circulars dated June 2, 2023, July 18, 2023, August 9, 2024, September 20, 2024, October 4, 2024, and July 25, 2025. The framework involves stage-based surveillance with progressively stricter trading restrictions and margin requirements for securities meeting specified criteria.

Compliance Requirements

  • NSE members must ensure compliance with 100% margin requirement for all ESM securities effective November 7, 2025
  • Members must note the shift of ESM securities from Rolling Settlement to Trade-for-Trade segment
  • Members should be aware that Stage II securities will trade under Periodic Call Auction with 2% price band
  • Market participants must comply with all other prevailing surveillance measures imposed by the Exchange
  • For queries, members may contact surveillance@nse.co.in

Important Dates

  • November 4, 2025: Circular issuance date
  • November 6, 2025: SAAKSHI moves to ESM Stage II; Stage II securities come under Trade for Trade with 2% price band under Periodic Call Auction; 100% margin applies to all open positions
  • November 7, 2025: 100% margin requirement effective for new positions; securities shift from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST)

Impact Assessment

Market Impact: The movement of SAAKSHI to ESM Stage II will significantly reduce liquidity as it shifts to Trade-for-Trade with Periodic Call Auction and 2% price band restrictions. The 100% margin requirement will substantially increase capital requirements for traders holding positions in any ESM securities.

Operational Impact: Brokers and trading members must ensure their risk management systems are updated to enforce 100% margin requirements. The shift to Trade-for-Trade segment means no intraday trading is permitted, and all trades must result in delivery.

Investor Impact: Investors holding positions in ESM securities, particularly SAAKSHI, will face increased margin requirements and reduced trading flexibility. The Periodic Call Auction mechanism in Stage II will limit trading opportunities to specific auction sessions with restricted price movement.

The Exchange clarifies that ESM shortlisting is purely for market surveillance purposes and should not be construed as adverse action against the concerned companies.

Impact Justification

Requires 100% margin on affected securities and shifts them to trade-for-trade segment, significantly impacting liquidity and trading for investors holding positions in ESM securities