Description

NSE adds Global Education Limited and TVS Electronics Limited to Enhanced Surveillance Measure (ESM) Stage I effective December 5, 2025, requiring 100% margin and Trade-for-Trade settlement.

Summary

NSE has added two securities to the Enhanced Surveillance Measure (ESM) framework effective December 5, 2025. Global Education Limited (GLOBAL) and TVS Electronics Limited (TVSELECT) will be subject to Stage I surveillance measures, requiring minimum 100% margin on all positions and shifting from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series). No securities are being excluded from the ESM framework or moving between stages.

Key Points

  • Two securities added to ESM Stage I: Global Education Limited (GLOBAL, ISIN: INE291W01037) and TVS Electronics Limited (TVSELECT, ISIN: INE236G01019)
  • 100% margin requirement applies on all open positions as of December 4, 2025, and new positions from December 5, 2025
  • Securities will shift from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) effective December 5, 2025
  • No securities are moving from Stage I to Stage II or vice versa
  • No securities are being excluded from ESM framework
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is based purely on market surveillance and not an adverse action against the companies

Regulatory Changes

The Enhanced Surveillance Measure continues to be applied based on criteria established in previous circulars (NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315). The framework mandates:

  • Minimum 100% margin on all positions for securities under ESM
  • Mandatory Trade-for-Trade settlement (no intraday trading)
  • Securities in Stage II operate under Trade-for-Trade with 2% price band under Periodic Call Auction

Compliance Requirements

For NSE Members:

  • Ensure 100% margin is collected on all open positions in GLOBAL and TVSELECT as of December 4, 2025
  • Apply 100% margin on new positions in these securities from December 5, 2025 onwards
  • Update trading systems to reflect Trade-for-Trade settlement for these securities from December 5, 2025
  • Inform clients about the surveillance measures and trading restrictions

For Investors:

  • All trades in GLOBAL and TVSELECT must result in compulsory delivery
  • No intraday trading or squaring off positions allowed
  • Full margin payment required upfront

Important Dates

  • December 3, 2025: Circular issued
  • December 4, 2025: Last day of regular Rolling Settlement trading for GLOBAL and TVSELECT; 100% margin applies on open positions
  • December 5, 2025: Securities shift to Trade-for-Trade segment (BE/ST series); 100% margin requirement effective on new positions

Impact Assessment

Trading Impact:

  • Significant reduction in liquidity for GLOBAL and TVSELECT due to Trade-for-Trade requirement
  • Elimination of intraday trading opportunities
  • Higher capital requirements due to 100% margin mandate
  • Potential widening of bid-ask spreads

Investor Impact:

  • Only delivery-based trades permitted, restricting speculative activity
  • Full upfront payment required, increasing capital lock-in
  • May deter short-term traders and reduce trading volumes

Market Impact:

  • Enhanced surveillance aims to curb excessive volatility and potential manipulation
  • Reduced speculation may lead to more stable price discovery
  • Signal to market participants about heightened regulatory scrutiny on these securities

Impact Justification

Significant trading restrictions with 100% margin requirement and shift to Trade-for-Trade segment for two securities, directly impacting liquidity and trading flexibility