Description

NSE announces inclusion of 3 securities in ESM Stage-I with 100% margin requirement and exclusion of certain securities from the ESM framework effective November 17-18, 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework affecting multiple securities. Three securities (GCSL, NRVANDANA, UYFINCORP) will be included in ESM Stage-I with 100% minimum margin requirements effective November 18, 2025. These securities will shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST). Additionally, two securities (DHTL, PANACHE) are moving from ESM Stage-II to Stage-I, while certain securities are being excluded from the ESM framework.

Key Points

  • 3 new securities included in ESM Stage-I: Gretex Corporate Services Limited (GCSL), N R Vandana Tex Industries Limited (NRVANDANA), and U. Y. Fincorp Limited (UYFINCORP)
  • 100% minimum margin requirement applicable on all open positions as on November 17, 2025 and new positions from November 18, 2025
  • Securities shifting to Trade-for-Trade segment (Series: BE/ST) from Rolling Settlement (Series: EQ/SM)
  • Securities moving to Stage-II will have 2% price band under Periodic Call Auction
  • DHTL and PANACHE moving from ESM Stage-II to Stage-I
  • ESM framework operates in conjunction with other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not adverse action against companies

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 placed under Trade-for-Trade with 2% price band under Periodic Call Auction mechanism. When securities move out of the framework, their price bands will be reinstated to pre-ESM levels, subject to not being part of other surveillance measures.

Compliance Requirements

  • Members must ensure 100% margin collection on all open positions in affected securities as on November 17, 2025
  • 100% margin requirement applies to all new positions created from November 18, 2025
  • Trading in affected securities must follow Trade-for-Trade settlement mechanism
  • Members should refer to consolidated list in Annexure III for complete ESM securities list
  • For queries, members can contact surveillance@nse.co.in

Important Dates

  • November 14, 2025: Circular issued
  • November 17, 2025: Securities moving to Stage-II will be under Trade-for-Trade with 2% price band under Periodic Call Auction; securities eligible for exclusion from ESM framework
  • November 18, 2025: 100% margin requirement effective; shift from EQ/SM to BE/ST segment effective for Stage-I securities

Impact Assessment

High Impact: The imposition of 100% margin requirements and shift to Trade-for-Trade settlement significantly restricts liquidity and trading flexibility for affected securities. Investors holding positions in GCSL, NRVANDANA, and UYFINCORP will face substantially higher margin requirements, which may force position closures or require additional capital deployment. The Trade-for-Trade mechanism eliminates intraday trading opportunities and requires full upfront payment/delivery, materially impacting trading volumes and liquidity. The 2% price band restriction for Stage-II securities further limits price discovery. Market participants should review their positions in these securities and assess margin adequacy before the effective dates.

Impact Justification

Affects trading mechanism and margin requirements for multiple securities; securities moved to trade-for-trade with 100% margin requirement