Description

NSE circular regarding addition of Eurotex Industries to ESM Stage-I with 100% margin requirement and shift to Trade-for-Trade segment effective December 11, 2025.

Summary

NSE has issued a surveillance circular regarding the Enhanced Surveillance Measure (ESM) framework. One security, Eurotex Industries and Exports Limited (EUROTEXIND), has been shortlisted for inclusion under ESM Stage-I. The security will attract a minimum 100% margin requirement and will be shifted from Rolling Settlement segment to Trade-for-Trade segment effective December 11, 2025. No securities are being excluded from the ESM framework or moving between stages in this update.

Key Points

  • Eurotex Industries and Exports Limited (EUROTEXIND, ISIN: INE022C01012) added to ESM Stage-I
  • 100% margin requirement applicable on all open positions as on December 10, 2025, and new positions from December 11, 2025
  • Security will shift from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  • No securities are eligible to move out from ESM framework in this update
  • No securities moving between Stage-I and Stage-II
  • Consolidated ESM list includes securities like Anondita Medicare Limited, ASL Industries Limited, Bafna Pharmaceuticals Limited, and Cura Technologies Limited in Stage-II
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ESM 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 per previous NSE circulars (NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315). The measure is designed to protect investor interests by imposing additional surveillance and trading restrictions on securities meeting specific criteria related to price movements, volatility, or other surveillance parameters.

Compliance Requirements

  • Trading Members: Must ensure 100% margin is collected on EUROTEXIND for all open positions as on December 10, 2025
  • Trading Members: Must collect 100% margin on all new positions in EUROTEXIND created from December 11, 2025 onwards
  • Market Participants: Must note that EUROTEXIND will be available for trading only in Trade-for-Trade segment (Series: BE/ST) from December 11, 2025
  • Clients: Delivery-based settlement will be mandatory for all trades in EUROTEXIND; intraday squaring off will not be permitted
  • Securities moving to Stage-II are subject to Trade-for-Trade with 2% price band under Periodic Call Auction from December 10, 2025

Important Dates

  • December 09, 2025: Circular issue date
  • December 10, 2025: Last day for trading EUROTEXIND in Rolling Settlement segment; 100% margin applicable on all open positions
  • December 11, 2025: Effective date for shift of EUROTEXIND to Trade-for-Trade segment; 100% margin applicable on all new positions
  • December 10, 2025: Effective date for securities moving to Stage-II to be under Trade-for-Trade with 2% price band under Periodic Call Auction

Impact Assessment

Market Impact: The addition of EUROTEXIND to ESM Stage-I will significantly impact liquidity and trading activity in the security. The shift to Trade-for-Trade segment eliminates intraday trading opportunities and requires full delivery-based settlement, which typically reduces trading volumes and speculative activity.

Capital Impact: The 100% margin requirement substantially increases the capital burden on market participants holding positions in EUROTEXIND. Traders and investors will need to fund the entire value of their positions, which may force position reductions or exits.

Investor Protection: The ESM framework aims to protect retail investors by curbing excessive speculation and price manipulation in securities exhibiting abnormal trading patterns. The restrictions help stabilize prices and reduce volatility.

Broader Market: The consolidated ESM list continues to monitor multiple securities across Stage-I and Stage-II, indicating NSE’s ongoing surveillance efforts to maintain market integrity. Market participants should monitor their portfolios for any securities under ESM and adjust their trading strategies accordingly.

Impact Justification

Security moved to ESM Stage-I with 100% margin requirement and Trade-for-Trade segment, significantly restricting trading and increasing capital requirements for market participants holding positions in EUROTEXIND