Description

NSE announces inclusion of Renol Polychem Limited in ESM Stage-I framework with 100% margin requirement and shift to Trade-for-Trade segment effective November 10, 2025.

Summary

NSE has issued a circular regarding the Enhanced Surveillance Measure (ESM) framework. One security, Renol Polychem Limited (RNPL), has been identified for inclusion under ESM Stage-I, which will attract minimum 100% margin requirements and be shifted from Rolling Settlement to Trade-for-Trade segment. No securities are being excluded from the ESM framework or moving between stages in this update.

Key Points

  • Renol Polychem Limited (RNPL, ISIN: INE0VZX01015) added to ESM Stage-I
  • 100% minimum margin applicable on all open positions as on November 07, 2025 and new positions from November 10, 2025
  • Security will shift from Rolling Settlement segment (EQ/SM series) to Trade-for-Trade segment (BE/ST series)
  • No securities are eligible to move out from the ESM framework
  • No securities moving between Stage-I and Stage-II
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance purposes and not an adverse action against the company

Regulatory Changes

This circular implements the Enhanced Surveillance Measure framework as per previous circulars 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). The framework introduces heightened surveillance measures for securities meeting specific criteria.

Compliance Requirements

  • All NSE members must apply minimum 100% margin on RNPL for all open positions as on November 07, 2025
  • 100% margin must be applied on all new positions in RNPL created from November 10, 2025 onwards
  • Trading members must facilitate trades in RNPL only in Trade-for-Trade segment (BE/ST series) from November 10, 2025
  • Market participants should refer to ESM FAQs at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm
  • Queries can be directed to surveillance@nse.co.in

Important Dates

  • November 06, 2025: Circular issue date
  • November 07, 2025: 100% margin applicable on all open positions in RNPL; Securities shifting to Stage-II come under Trade-for-Trade with 2% price band under Periodic Call Auction
  • November 10, 2025: Shift from EQ/SM to BE/ST series for RNPL; 100% margin applicable on all new positions created from this date

Impact Assessment

High Impact on RNPL: The inclusion of Renol Polychem Limited in ESM Stage-I will significantly impact its trading dynamics. The 100% margin requirement will substantially increase capital requirements for traders, likely reducing speculative activity and trading volumes. The shift to Trade-for-Trade segment eliminates intraday trading opportunities and requires delivery-based settlement for all trades, further reducing liquidity. This measure aims to curb excessive volatility and ensure orderly price discovery, but may result in wider bid-ask spreads and reduced market depth for the affected security.

Impact Justification

High importance due to mandatory 100% margin and shift to T2T segment for affected security, significantly impacting trading conditions and liquidity