Description

NSE implements Enhanced Surveillance Measure (ESM) framework with Maxvolt Energy Industries Limited moving to Stage-I and Kandarp Digi Smart BPO Limited moving to Stage-II, effective November 12-13, 2025.

Summary

NSE has issued surveillance measures under the Enhanced Surveillance Measure (ESM) framework affecting specific securities. Maxvolt Energy Industries Limited is being included in ESM Stage-I, while Kandarp Digi Smart BPO Limited is being moved from Stage-I to Stage-II. These changes impose stricter trading conditions including minimum 100% margin requirements and trade-for-trade settlement effective November 13, 2025.

Key Points

  • Maxvolt Energy Industries Limited (INE10A501018) newly included in ESM Stage-I
  • Kandarp Digi Smart BPO Limited (INE0MOT01016) moving from ESM Stage-I to Stage-II
  • Securities in ESM Stage-I will attract minimum 100% margin on all positions
  • No securities are being excluded from the ESM framework at this time
  • 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

ESM Stage-I Securities:

  • Shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  • Minimum 100% margin applied on all open positions as of November 12, 2025, and new positions from November 13, 2025

ESM Stage-II Securities:

  • Trade-for-Trade with 2% price band under Periodic Call Auction
  • Additional restrictions beyond Stage-I measures

Compliance Requirements

For NSE Members:

  • Ensure minimum 100% margin is collected for securities listed in Annexure I
  • Apply margin requirements to both existing open positions (as of November 12, 2025) and new positions created from November 13, 2025
  • Transition affected securities from Rolling Settlement to Trade-for-Trade segment
  • Implement periodic call auction with 2% price band for Stage-II securities
  • Review consolidated list in Annexure III for all securities currently under ESM framework

For Investors:

  • Higher margin requirements will apply for trading in affected securities
  • Only delivery-based trading permitted (Trade-for-Trade)
  • Stage-II securities subject to periodic call auction with limited price movement

Important Dates

  • November 11, 2025: Circular issued
  • November 12, 2025: ESM measures become applicable; Stage-II securities move to periodic call auction with 2% price band
  • November 13, 2025: 100% margin effective on new positions; securities shift from EQ/SM to BE/ST segment

Impact Assessment

Market Impact:

  • Reduced liquidity in affected securities due to Trade-for-Trade requirement
  • Higher capital requirements for traders due to 100% margin mandate
  • Limited intraday trading opportunities as positions must be settled by delivery
  • Price discovery constraints for Stage-II securities due to 2% price band in periodic call auction

Operational Impact:

  • Trading members must update risk management systems to enforce 100% margin
  • Brokers need to communicate restrictions to clients holding or trading these securities
  • Settlement processes shift from net settlement to gross delivery-based settlement

Investor Impact:

  • Increased capital commitment required for trading positions
  • Reduced flexibility for short-term trading strategies
  • Potential difficulty in exiting positions due to reduced liquidity
  • Stage-II securities face additional constraints with periodic call auction mechanism

Reference Circulars: This circular references previous ESM-related 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).

For additional information, members can refer to NSE’s Enhanced Surveillance Measure FAQs at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm or contact surveillance@nse.co.in

Impact Justification

Significant trading restrictions applied including 100% margin requirement, shift to Trade-for-Trade segment, and periodic call auction with 2% price band for affected securities