Description

NSE adds Shubhlaxmi Jewel Art Limited to Enhanced Surveillance Measure (ESM) Stage-I with 100% margin requirement and shift to Trade-for-Trade segment effective November 28, 2025.

Summary

NSE has issued Circular No. 916/2025 implementing Enhanced Surveillance Measure (ESM) on Shubhlaxmi Jewel Art Limited (SHUBHLAXMI, ISIN: INE01Z401013). The security will attract a minimum 100% margin on all open and new positions, and will be shifted from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST) effective November 28, 2025. No securities are being excluded from the ESM framework or moving between stages in this update.

Key Points

  • Shubhlaxmi Jewel Art Limited added to ESM Stage-I effective November 27, 2025
  • 100% minimum margin requirement applies from November 28, 2025 on all open positions as of November 27, 2025 and new positions created thereafter
  • Security to be shifted from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series) from November 28, 2025
  • No securities eligible for exclusion from ESM framework in this update
  • No securities moving between Stage-I and Stage-II
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance purposes and not an adverse action against the company

Regulatory Changes

This circular implements the Enhanced Surveillance Measure framework as established under previous NSE circulars (NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315). The measure applies stricter trading restrictions and margin requirements on securities meeting specific surveillance criteria.

Compliance Requirements

  • Trading Members: Must ensure 100% margin collection on SHUBHLAXMI for all open positions as on November 27, 2025
  • All Market Participants: Must trade SHUBHLAXMI only in Trade-for-Trade segment (BE/ST series) from November 28, 2025
  • Margin Collection: Minimum 100% margin required on all new positions created from November 28, 2025
  • Settlement: All trades must be settled on a delivery basis in Trade-for-Trade segment (no intraday squaring off)

Important Dates

  • November 26, 2025: Circular issue date
  • November 27, 2025: ESM Stage-I applicability begins; 100% margin applies to open positions
  • November 28, 2025: Securities shift from EQ/SM to BE/ST series; 100% margin applies to new positions

Impact Assessment

Trading Impact: The shift to Trade-for-Trade segment eliminates intraday trading opportunities and requires compulsory delivery, significantly reducing liquidity and trading flexibility for SHUBHLAXMI.

Capital Impact: The 100% margin requirement substantially increases capital requirements for traders holding positions in the affected security, as compared to normal VaR-based margins.

Market Participants: Investors and traders in SHUBHLAXMI must prepare for reduced liquidity, wider bid-ask spreads, and higher capital requirements. Existing position holders as of November 27, 2025 will face immediate margin impact.

Operational Impact: Brokers must update their risk management systems to enforce 100% margins and restrict trading to Trade-for-Trade segment for the affected security.

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

Impact Justification

High ranking due to 100% margin requirement and mandatory shift to Trade-for-Trade segment, significantly impacting trading flexibility and liquidity for the affected security