Description

NSE updates Enhanced Surveillance Measure framework with new securities added to ESM Stage-I, movements between stages, and minimum 100% margin requirements effective November 19, 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework effective November 18-19, 2025. Three new securities (Bhagyanagar India Limited, Karnika Industries Limited, and Sacheerome Limited) have been added to ESM Stage-I with 100% minimum margin requirements. Two securities (Anondita Medicare Limited and Soma Textiles & Industries Limited) are moving from Stage-I to Stage-II. Securities under ESM will shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series), with Stage-II securities additionally subject to 2% price band under Periodic Call Auction.

Key Points

  • Three securities added to ESM Stage-I: BHAGYANGR, KARNIKA, and SACHEEROME
  • Minimum 100% margin applies to all open positions as on November 18, 2025, and new positions from November 19, 2025
  • Securities moving from ESM Stage-I to Stage-II: ANONDITA and SOMATEX
  • No securities excluded from ESM framework in this update
  • No securities moving from Stage-II back to Stage-I
  • ESM securities shifted from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST) effective November 19, 2025
  • Stage-II securities will be under Trade-for-Trade with 2% price band under Periodic Call Auction from November 18, 2025
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • ESM classification is purely a market surveillance measure and not an adverse action against the company

Regulatory Changes

The Enhanced Surveillance Measure framework continues to be applied based on specific criteria outlined in previous circulars (NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315). Securities qualifying under ESM are subject to enhanced margin requirements and trading restrictions to address surveillance concerns.

Compliance Requirements

  • Market participants must ensure compliance with 100% minimum margin requirement for all ESM Stage-I securities
  • Margins apply to both existing open positions (as on November 18, 2025) and new positions created from November 19, 2025
  • Trading members must adjust their systems to accommodate the shift from Rolling Settlement to Trade-for-Trade segment
  • Participants must comply with 2% price band restrictions for Stage-II securities under Periodic Call Auction
  • Members should refer to NSE’s FAQ page for detailed information: https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm
  • Queries can be directed to surveillance@nse.co.in

Important Dates

  • November 17, 2025: Circular issued
  • November 18, 2025:
    • ESM Stage movements become effective
    • 100% margin requirement applies to open positions
    • Stage-II securities come under Trade-for-Trade with 2% price band under Periodic Call Auction
  • November 19, 2025:
    • New securities shift from EQ/SM to BE/ST series (Trade-for-Trade segment)
    • 100% margin requirement applies to new positions

Impact Assessment

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

Liquidity Impact: Trading restrictions and higher margin requirements typically reduce liquidity in affected securities, potentially widening bid-ask spreads and reducing trading volumes.

Investor Impact: Existing position holders must arrange for additional margin by November 18, 2025. Stage-II securities face additional constraints with 2% price band under Periodic Call Auction, limiting price discovery.

Market Surveillance: The measure aims to curb excessive speculation and unusual price movements in securities exhibiting abnormal trading patterns. The ESM framework is designed to protect market integrity without taking adverse action against the underlying companies.

Impact Justification

Imposes 100% margin requirement and shifts securities to Trade-for-Trade segment, significantly impacting trading in affected securities and investor positions