Description

NSE circular announcing inclusion and exclusion of securities under Enhanced Surveillance Measure (ESM) framework effective November 10-11, 2025, with movement to Trade-for-Trade segment and 100% margin requirements.

Summary

NSE has issued circular updating the list of securities under Enhanced Surveillance Measure (ESM) framework. Five securities are being included in ESM Stage-I with 100% margin requirements and shift to Trade-for-Trade segment effective November 11, 2025. One security (VIJIFIN) is being moved from Stage-II to Stage-I. Securities moving to Stage-II will be under Trade-for-Trade with 2% price band under Periodic Call Auction from November 10, 2025.

Key Points

  • Five new securities included in ESM Stage-I: Commercial Syn Bags Limited (COMSYN), E Factor Experiences Limited (EFACTOR), Fonebox Retail Limited (FONEBOX), Silly Monks Entertainment Limited (SILLYMONKS), and Sunlite Recycling Industries Limited (SUNLITE)
  • All Stage-I securities will attract minimum 100% margin on all open positions as on November 10, 2025, and new positions from November 11, 2025
  • Securities shifting from Rolling Settlement segment (EQ/SM series) to Trade-for-Trade segment (BE/ST series) effective November 11, 2025
  • Viji Finance Limited (VIJIFIN) moving from ESM Stage-II to Stage-I effective November 10, 2025
  • Stage-II securities will be under Trade-for-Trade with 2% price band under Periodic Call Auction from November 10, 2025
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ESM is purely for market surveillance and not an adverse action against the company

Regulatory Changes

The Enhanced Surveillance Measure (ESM) framework continues with the following key features:

  • Stage-I Requirements: 100% margin requirement on all positions, shift to Trade-for-Trade segment
  • Stage-II Requirements: Trade-for-Trade with 2% price band under Periodic Call Auction
  • Segment Shift: Securities move from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST)
  • Price Band Restoration: Securities moving out of ESM will have price bands reinstated to pre-ESM levels, unless under other surveillance measures

This circular references 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).

Compliance Requirements

For Market Participants:

  • Ensure 100% margin is available for all open positions in Stage-I securities by November 10, 2025
  • Update trading systems to reflect segment changes from EQ/SM to BE/ST for affected securities
  • Implement Trade-for-Trade settlement procedures for newly included securities
  • Apply 2% price band restrictions for Stage-II securities under Periodic Call Auction
  • Monitor consolidated list of securities under ESM framework (Annexure III)

For Trading Members:

  • Notify clients holding positions in affected securities about increased margin requirements
  • Ensure compliance with Trade-for-Trade settlement obligations
  • Update risk management systems to reflect new surveillance parameters

Important Dates

  • November 07, 2025: Circular issued (NSE/SURV/71194, Circular Ref. No: 868/2025)
  • November 10, 2025:
    • 100% margin applicable on all open positions in Stage-I securities
    • Stage-II securities shift to Trade-for-Trade with 2% price band under Periodic Call Auction
    • VIJIFIN moves from Stage-II to Stage-I
  • November 11, 2025:
    • New positions in Stage-I securities require 100% margin
    • Five securities shift from EQ/SM to BE/ST segment (COMSYN, EFACTOR, FONEBOX, SILLYMONKS, SUNLITE)

Impact Assessment

Market Impact:

  • Significant liquidity reduction expected in affected securities due to 100% margin requirement and Trade-for-Trade restrictions
  • Trading volumes likely to decline substantially as intraday trading becomes impractical
  • Price discovery may be affected by reduced participation and 2% price band for Stage-II securities

Operational Impact:

  • Brokers must ensure adequate margin collection systems and client communication
  • Settlement processes shift from rolling to Trade-for-Trade, requiring full upfront payment/delivery
  • Risk management systems need updates to reflect new margin and trading restrictions

Investor Impact:

  • Retail and institutional investors holding these securities face higher capital requirements (100% margin vs. typical 20-40%)
  • Exit strategies may be constrained by reduced liquidity and Trade-for-Trade settlement
  • Long-term investors may face challenges in position management

Securities Affected:

  • Stage-I Inclusions: COMSYN, EFACTOR, FONEBOX, SILLYMONKS, SUNLITE (5 securities)
  • Stage Movement: VIJIFIN (Stage-II to Stage-I)
  • Total Impact: 6 securities directly affected by this circular

For additional information, refer to NSE FAQs on Enhanced Surveillance Measure: https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm

Queries may be directed to: surveillance@nse.co.in

Impact Justification

Significant trading restrictions including mandatory 100% margin, shift to Trade-for-Trade segment, and price band limitations affecting multiple securities. Immediate impact on trading operations for affected stocks.