Description

NSE updates Enhanced Surveillance Measure framework with 4 securities moving to Stage I, 6 securities moving from Stage I to Stage II, and implementation of 100% margin requirements effective November 14, 2025.

Summary

NSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective November 13-14, 2025. Four securities are being added to ESM Stage I with 100% margin requirements and shift to Trade-for-Trade (T-T) segment. Six securities are moving from Stage I to Stage II with additional restrictions including 2% price band under Periodic Call Auction. The measure applies minimum 100% margin on all open positions as of November 13, 2025, and new positions from November 14, 2025.

Key Points

  • 4 securities added to ESM Stage I: Arham Technologies Limited, Hoac Foods India Limited, Twamev Construction and Infrastructure Limited, and Vision Infra Equipment Solutions Limited
  • 6 securities moving from Stage I to Stage II: Bafna Pharmaceuticals Limited, Kavveri Defence & Wireless Technologies Limited, Mahamaya Steel Industries Limited, Moxsh Overseas Educon Limited, M.V.K. Agro Food Product Limited, and Polysil Irrigation Systems Limited
  • No securities moving from Stage II to Stage I
  • Securities in Stage I to shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST)
  • Stage II securities will have 2% price band under Periodic Call Auction
  • Minimum 100% margin requirement on all positions
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

Securities qualifying under ESM will be shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST). Securities moving to Stage II will be under Trade for Trade with price band of 2% under Periodic Call Auction. The Exchange clarifies that shortlisting under ESM is purely for market surveillance purposes and should not be construed as adverse action against the concerned company/entity.

Compliance Requirements

  • Market participants must maintain minimum 100% margin on all open positions in ESM securities as on November 13, 2025
  • 100% margin applies to new positions created from November 14, 2025 onwards
  • Trading members must comply with Trade-for-Trade settlement requirements for affected securities
  • Stage II securities subject to 2% price band restrictions under Periodic Call Auction mechanism
  • Members advised to review consolidated list of securities under ESM framework (Annexure III)

Important Dates

  • November 12, 2025: Circular issued (Ref No: NSE/SURV/71254, Circular No: 882/2025)
  • November 13, 2025: Stage II securities to be under Trade for Trade with 2% price band under Periodic Call Auction; 100% margin applicable on all open positions
  • November 14, 2025: Securities shift from EQ/SM to BE/ST segment; 100% margin applicable on new positions created from this date

Impact Assessment

Trading Impact: High - The shift to Trade-for-Trade segment eliminates intraday trading opportunities and requires full delivery of securities. The 100% margin requirement significantly increases capital requirements for traders holding positions in these securities.

Liquidity Impact: High - Stage II securities with 2% price band under Periodic Call Auction will experience restricted price movement and reduced trading frequency, potentially impacting liquidity.

Investor Impact: High - Investors holding open positions must arrange additional margin by November 13, 2025. The T-T segment shift means all trades must result in delivery, preventing speculative trading.

Market Surveillance: This measure is part of NSE’s ongoing surveillance framework to monitor securities exhibiting unusual price movements or trading patterns. The Exchange emphasizes this is a surveillance tool and not punitive action against listed companies.

Impact Justification

High impact on trading of affected securities with mandatory 100% margin, shift to Trade-for-Trade segment, and 2% price band restrictions under periodic call auction for Stage II securities