Description

NSE introduces Enhanced Surveillance Measures for 4 securities with 100% margin requirement and trade-for-trade mechanism effective December 18, 2025.

Summary

NSE has issued surveillance measures under the Enhanced Surveillance Measure (ESM) framework affecting 4 securities. Three securities (GICL, TRANSWIND, TVVISION) are being included in ESM Stage-I with minimum 100% margin requirement. One security (PROZONER) is being escalated from Stage-I to Stage-II with additional restrictions including 2% price band under Periodic Call Auction. All Stage-I securities will shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series).

Key Points

  • 3 securities added to ESM Stage-I: Globe International Carriers Limited (GICL), Transwind Infrastructures Limited (TRANSWIND), TV Vision Limited (TVVISION)
  • 1 security escalated from Stage-I to Stage-II: Prozone Realty Limited (PROZONER)
  • No securities excluded from ESM framework
  • No securities moved from Stage-II back to Stage-I
  • 100% minimum margin applies to all open positions and new positions
  • ESM framework operates in conjunction with other surveillance measures
  • Shortlisting is purely for market surveillance and not adverse action against companies

Regulatory Changes

Stage-I Securities (GICL, TRANSWIND, TVVISION):

  • Shift from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  • 100% margin requirement on all positions
  • Effective date for segment shift: December 18, 2025
  • Margin requirement applies to positions open as of December 17, 2025 and new positions from December 18, 2025

Stage-II Security (PROZONER):

  • Trade-for-Trade mechanism with 2% price band
  • Trading under Periodic Call Auction mechanism
  • Effective date: December 17, 2025

Compliance Requirements

For Market Participants:

  • Ensure adequate margin (minimum 100%) for affected securities in Stage-I
  • Adjust trading strategies for securities moving to Trade-for-Trade segment
  • Note that no intraday squaring off is permitted in Trade-for-Trade segment
  • Comply with 2% price band restriction for Stage-II security (PROZONER)
  • Monitor consolidated ESM list for ongoing compliance

For Members:

  • Apply surveillance measures to client positions
  • Communicate changes to affected clients
  • Direct queries to surveillance@nse.co.in

Important Dates

  • December 16, 2025: Circular issue date
  • December 17, 2025:
    • Margin requirement becomes applicable to open positions
    • PROZONER shifts to Stage-II with Periodic Call Auction and 2% price band
  • December 18, 2025:
    • Stage-I securities (GICL, TRANSWIND, TVVISION) shift to Trade-for-Trade segment (BE/ST)
    • 100% margin requirement applies to new positions created from this date

Impact Assessment

Liquidity Impact:

  • Severe liquidity restriction for affected securities due to Trade-for-Trade mechanism
  • No intraday trading permitted, reducing trading volumes
  • Higher margin requirements will reduce trading interest

Trading Impact:

  • PROZONER faces most severe restrictions with 2% price band under Periodic Call Auction
  • Price discovery mechanism changes from continuous trading to periodic auction for Stage-II
  • Increased transaction costs due to compulsory delivery-based settlement

Investor Impact:

  • Existing position holders must arrange 100% margin by December 17, 2025
  • Reduced ability to exit positions quickly due to Trade-for-Trade restrictions
  • Higher capital requirements for maintaining or creating positions

Market Surveillance:

  • Exchange emphasizes this is surveillance-driven, not punitive action against companies
  • Measures aim to curb excessive speculation and price manipulation
  • Framework operates alongside other existing surveillance measures

Impact Justification

Immediate impact on trading mechanism with 100% margin requirement and shift to trade-for-trade segment for affected securities, significantly restricting liquidity and trading flexibility