Description

NSE introduces 3 securities under Enhanced Surveillance Measure (ESM) Stage I with 100% margin requirement and trade-for-trade settlement effective November 24, 2025.

Summary

NSE has placed three securities under Enhanced Surveillance Measure (ESM) Stage I effective November 21-24, 2025. The affected securities will require minimum 100% margin on all positions and will be shifted from Rolling Settlement segment to Trade-for-Trade segment. This measure is part of NSE’s ongoing market surveillance framework to monitor securities exhibiting specific risk characteristics.

Key Points

  • 3 securities added to ESM Stage I: Oricon Enterprises Limited (ORICONENT), Sambhaav Media Limited (SAMBHAAV), and Unihealth Hospitals Limited (UNIHEALTH)
  • 100% margin requirement applicable on all open positions as on November 21, 2025 and new positions from November 24, 2025
  • Securities will shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series) from November 24, 2025
  • No securities moving between ESM stages or being excluded from the framework
  • Securities shifting to Stage II would be under Trade-for-Trade with 2% price band under Periodic Call Auction from November 21, 2025
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Circular reference number: 899/2025, Download reference: NSE/SURV/71381

Regulatory Changes

The Enhanced Surveillance Measure (ESM) framework continues under existing guidelines referenced in previous circulars (NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315). No new regulatory changes introduced; this circular implements the existing framework to newly qualified securities.

Compliance Requirements

  • Trading Members: Must ensure 100% margin collection on all open positions in the three listed securities from November 21, 2025
  • Market Participants: Must comply with Trade-for-Trade settlement requirements for these securities from November 24, 2025
  • Investors: No intraday trading allowed in these securities; delivery-based settlement mandatory
  • Risk Management: Enhanced margin requirements apply to both existing open positions and new positions created
  • Members should review position limits and client holdings in affected securities
  • Queries can be directed to surveillance@nse.co.in

Important Dates

  • November 20, 2025: Circular issued
  • November 21, 2025: 100% margin requirement becomes effective on all open positions; securities moving to Stage II (if any) come under Periodic Call Auction with 2% price band
  • November 24, 2025: Securities shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST); 100% margin applies to all new positions created from this date

Impact Assessment

Trading Impact: The shift to Trade-for-Trade segment eliminates intraday trading opportunities, significantly reducing liquidity and trading volumes in the three affected securities. The 100% margin requirement substantially increases capital requirements for traders.

Investor Impact: Retail and institutional investors holding positions in ORICONENT, SAMBHAAV, and UNIHEALTH will face higher margin obligations and reduced liquidity for exits. The measure may lead to price volatility as market participants adjust positions.

Market Sentiment: ESM placement typically signals heightened regulatory scrutiny due to price volatility, volume patterns, or other surveillance concerns. While NSE clarifies this is not adverse action against companies, the measure often results in negative sentiment and reduced participation.

Operational Impact: Brokers and trading members must update risk management systems, margin calculation frameworks, and client communication regarding the restrictions. Compliance teams need to ensure proper implementation of Trade-for-Trade settlement processes.

Liquidity Considerations: The combination of 100% margin and compulsory delivery settlement will materially impact market depth and bid-ask spreads for these securities.

Impact Justification

High ranking due to mandatory 100% margin requirement and shift to trade-for-trade segment affecting liquidity and trading flexibility for listed securities