Description

NSE announces inclusion of 3 securities in ESM Stage-I and movement of 1 security from Stage-I to Stage-II, effective December 2-3, 2025, with 100% margin requirements and trade-for-trade restrictions.

Summary

NSE has announced changes to the Enhanced Surveillance Measure (ESM) framework effective December 2-3, 2025. Three securities (ACCPL, BEACON, SOUTHWEST) are being included in ESM Stage-I with 100% margin requirements and will shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST). One security (GUJRAFFIA) is moving from Stage-I to Stage-II and will be subject to Trade-for-Trade with 2% price band under Periodic Call Auction. No securities are being excluded from the ESM framework.

Key Points

  • 3 securities added to ESM Stage-I: Accretion Pharmaceuticals Limited, Beacon Trusteeship Limited, and South West Pinnacle Exploration Limited
  • 100% minimum margin applicable on all open positions as on December 02, 2025 and new positions from December 03, 2025
  • Securities shifting from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) effective December 03, 2025
  • Gujarat Raffia Industries Limited (GUJRAFFIA) moving from ESM Stage-I to Stage-II
  • Stage-II securities will have 2% price band under Periodic Call Auction effective December 02, 2025
  • No securities eligible to exit ESM framework in this update
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

The circular implements surveillance measures under NSE’s Enhanced Surveillance Measure framework, previously established through circulars NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315. The changes represent ongoing market surveillance actions based on predefined criteria for identifying securities requiring enhanced monitoring.

Compliance Requirements

  • Market participants must ensure 100% margin is maintained for securities listed in Annexure I on all open positions as on December 02, 2025
  • 100% margin requirement applies to all new positions created from December 03, 2025 onwards
  • Trading members must comply with Trade-for-Trade settlement requirements for affected securities
  • Stage-II securities (GUJRAFFIA) subject to Periodic Call Auction with 2% price band restrictions
  • Members should refer to consolidated list in Annexure III for complete overview of all securities under ESM framework

Important Dates

  • December 01, 2025: Circular issued
  • December 02, 2025: 100% margin applicable on open positions; Stage-II securities under Trade-for-Trade with 2% price band in Periodic Call Auction begins; GUJRAFFIA moves from Stage-I to Stage-II
  • December 03, 2025: 100% margin applicable on new positions; Securities shift from EQ/SM to BE/ST segment (ACCPL, BEACON, SOUTHWEST)

Impact Assessment

Trading Impact: The shift to Trade-for-Trade segment and 100% margin requirement significantly reduces liquidity and speculative trading in affected securities. Intraday trading is eliminated, and all transactions require full upfront margin and delivery-based settlement.

Market Participants: Traders holding open positions in these securities as of December 02, 2025 must arrange for 100% margin, potentially leading to forced position closures if margins cannot be met. The restrictions make these securities less attractive for short-term trading strategies.

Price Volatility: Stage-II securities face additional constraints with 2% price band under Periodic Call Auction, limiting price discovery and potentially increasing volatility when restrictions are lifted or creating trapped liquidity situations.

Investor Awareness: NSE emphasizes that ESM shortlisting is purely a market surveillance action and should not be construed as adverse action against the companies. However, such measures typically signal regulatory concerns about unusual price movements, volatility, or other market integrity issues.

Impact Justification

High ranking due to significant trading restrictions (100% margin, trade-for-trade segment shift, 2% price band in periodic call auction) affecting multiple securities, impacting liquidity and trading activity for affected stocks.