Description

NSE announces Enhanced Surveillance Measure changes effective December 15-16, 2025, including addition of Alps Industries to ESM Stage-I, movement of Saakshi Medtech from Stage-II to Stage-I, and exclusion of Aarey Drugs from the framework.

Summary

NSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective December 15-16, 2025. Alps Industries Limited will be added to ESM Stage-I with a shift from rolling settlement (EQ/SM) to Trade-for-Trade segment (BE/ST) and 100% margin requirement. Saakshi Medtech and Panels Limited moves from ESM Stage-II to Stage-I. Aarey Drugs & Pharmaceuticals Limited is being excluded from the ESM framework entirely.

Key Points

  • Alps Industries Limited (ALPSINDUS, ISIN: INE093B01015) added to ESM Stage-I effective December 15, 2025
  • 100% minimum margin applicable on all open positions as on December 15, 2025 and new positions from December 16, 2025
  • Securities in ESM shifted from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST) from December 16, 2025
  • Saakshi Medtech and Panels Limited (SAAKSHI, ISIN: INE0PSK01027) moves from ESM Stage-II to Stage-I effective December 15, 2025
  • Securities moving to Stage-II will be under Trade-for-Trade with 2% price band under Periodic Call Auction from December 15, 2025
  • Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS, ISIN: INE198H01019) excluded from ESM framework from December 15, 2025
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

The Enhanced Surveillance Measure (ESM) framework continues with modifications to the list of securities under surveillance. Securities qualifying under ESM are subject to:

  • Mandatory 100% margin requirement
  • Migration from rolling settlement to Trade-for-Trade segment
  • For Stage-II securities: 2% price band restriction under Periodic Call Auction mechanism
  • Price bands for securities exiting the framework will be reinstated to pre-ESM levels, unless subject to other surveillance measures

Compliance Requirements

  • Members must ensure 100% margin is collected on all open positions in affected securities as on December 15, 2025
  • 100% margin must be collected on all new positions created from December 16, 2025 in ESM securities
  • Trading in Alps Industries Limited must shift to Trade-for-Trade (BE/ST series) from December 16, 2025
  • Members must note that ESM shortlisting is purely for market surveillance purposes and not an adverse action against the company
  • Members should refer to consolidated list in Annexure III for complete ESM securities list

Important Dates

  • December 12, 2025: Circular issued
  • December 15, 2025: ESM changes become effective; 100% margin applicable on open positions; Stage-II securities shift to Trade-for-Trade with 2% price band under Periodic Call Auction
  • December 16, 2025: 100% margin applicable on new positions; Alps Industries shifts from EQ/SM to BE/ST segment

Impact Assessment

Market Impact:

  • Increased margin requirements of 100% will significantly impact liquidity and trading volumes in Alps Industries
  • Shift to Trade-for-Trade segment eliminates intraday trading and speculative activity
  • Exclusion of Aarey Drugs from ESM provides relief and restored normal trading conditions

Operational Impact:

  • Brokers and members must adjust margin collection systems for affected securities
  • Risk management systems need updates to reflect new margin requirements
  • Settlement processes change from rolling to trade-for-trade for Alps Industries

Investor Impact:

  • Investors holding positions in Alps Industries face 100% margin requirement
  • No intraday trading possible in Trade-for-Trade segment
  • Reduced liquidity and increased transaction costs in ESM securities
  • Positive impact for Aarey Drugs investors with removal of restrictions

The surveillance measure is designed to curb excessive speculation and price manipulation while maintaining market integrity.

Impact Justification

High importance due to mandatory 100% margin requirement and shift to Trade-for-Trade segment affecting trading in specified securities, with immediate impact on market participants' positions and trading mechanisms