Description

NSE implements Enhanced Surveillance Measure changes affecting multiple securities, shifting them to Trade-for-Trade segment with 100% margin requirement effective December 01, 2025.

Summary

NSE has announced changes to securities under Enhanced Surveillance Measure (ESM) framework effective November 28 and December 01, 2025. Two new securities are added to ESM Stage-I, two securities move from Stage-I to Stage-II, and all affected securities will shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series). A minimum 100% margin will be applicable on all open and new positions.

Key Points

  • Two securities added to ESM Stage-I: SVP Global Textiles Limited and Systango Technologies Limited
  • Two securities moving from Stage-I to Stage-II: Dhariwalcorp Limited and TechD Cybersecurity Limited
  • Securities in Stage-I will shift from EQ/SM to BE/ST series effective December 01, 2025
  • Stage-II securities will be under Trade-for-Trade with 2% price band under Periodic Call Auction from November 28, 2025
  • 100% margin requirement applies to all open positions as on November 28, 2025, and new positions from December 01, 2025
  • No securities excluded from ESM framework in this update
  • No securities moving from Stage-II back to Stage-I

Regulatory Changes

  • Imposition of Enhanced Surveillance Measure on identified securities based on market surveillance criteria
  • Mandatory shift from Rolling Settlement segment to Trade-for-Trade segment for ESM Stage-I securities
  • Implementation of Periodic Call Auction mechanism with restricted 2% price band for Stage-II securities
  • ESM framework operates in conjunction with all other prevailing surveillance measures imposed by the Exchange

Compliance Requirements

  • Members must ensure compliance with 100% margin requirement for affected securities
  • Trading members need to adapt to Trade-for-Trade settlement for securities moving from EQ/SM to BE/ST series
  • Market participants must comply with 2% price band restrictions under Periodic Call Auction for Stage-II securities
  • Investors should note restricted trading conditions and liquidity constraints in affected securities
  • For queries, members should contact surveillance@nse.co.in

Important Dates

  • November 27, 2025: Circular issued
  • November 28, 2025: Stage-II securities come under Trade-for-Trade with 2% price band under Periodic Call Auction; 100% margin applicable on open positions
  • December 01, 2025: Securities shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST); 100% margin on new positions begins

Impact Assessment

Trading Impact: Severely restricted liquidity for affected securities due to Trade-for-Trade mechanism eliminating intraday trading and squaring off positions. The 2% price band for Stage-II securities further limits price discovery.

Margin Impact: 100% margin requirement significantly increases capital requirements for traders holding positions in these securities, potentially forcing position unwinding.

Investor Impact: Retail and institutional investors face reduced liquidity, wider bid-ask spreads, and difficulty in entering or exiting positions. Settlement becomes T+1 with no intraday leverage.

Market Sentiment: ESM designation, while not an adverse action against companies, typically signals heightened volatility or unusual price movements, potentially deterring investor participation.

Affected Securities:

  • SVP Global Textiles Limited (SVPGLOB) - Stage-I
  • Systango Technologies Limited (SYSTANGO) - Stage-I
  • Dhariwalcorp Limited (DHARIWAL) - Moving to Stage-II
  • TechD Cybersecurity Limited (TECHD) - Moving to Stage-II

Impact Justification

High impact due to mandatory 100% margin requirement and shift to Trade-for-Trade segment with restricted trading conditions for affected securities. Directly affects trading liquidity and investor exposure in these stocks.