Description

NSE announces changes to Enhanced Surveillance Measure framework with Maan Aluminium Limited added to ESM Stage-I and six securities moving from Stage-II to Stage-I effective December 22-23, 2025.

Summary

NSE has issued updates to the Enhanced Surveillance Measure (ESM) framework. Maan Aluminium Limited will be added to ESM Stage-I with 100% margin requirements and shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST). Six securities currently in ESM Stage-II (Anondita Medicare, Bafna Pharmaceuticals, Kandarp Digi Smart BPO, Kavveri Defence & Wireless Technologies, Mahamaya Steel Industries, and Moxsh Overseas Educon) will move to Stage-I. Securities in Stage-II will trade under Trade-for-Trade with 2% price band under Periodic Call Auction.

Key Points

  • Maan Aluminium Limited (MAANALU) added to ESM Stage-I effective December 22, 2025
  • 100% minimum margin will apply on all open positions as of December 22, 2025 and new positions from December 23, 2025
  • MAANALU will shift from EQ/SM series to BE/ST series (Trade-for-Trade) effective December 23, 2025
  • Six securities moving from ESM Stage-II to Stage-I: ANONDITA, BAFNAPH, KANDARP, KAVDEFENCE, MAHASTEEL, MOXSH
  • Securities in Stage-II will be under Trade-for-Trade with 2% price band under Periodic Call Auction from December 22, 2025
  • ESM framework works in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not adverse action against companies

Regulatory Changes

This circular updates the ESM framework previously established through circulars NSE/SURV/56948 (June 02, 2023), NSE/SURV/57609 (July 18, 2023), NSE/SURV/63361 (August 09, 2024), NSE/SURV/64066 (September 20, 2024), NSE/SURV/64400 (October 04, 2024), and NSE/SURV/69315 (July 25, 2025). The framework includes two stages with different trading restrictions and margin requirements.

Compliance Requirements

  • Market participants must ensure 100% margin compliance for securities in ESM Stage-I
  • Trading members must adjust trading strategies for affected securities moved to Trade-for-Trade segment
  • Securities shifting to Stage-II require adherence to 2% price band restrictions under Periodic Call Auction mechanism
  • Members must monitor the consolidated list of securities under the ESM framework (Annexure III)
  • Price bands for securities exiting the framework will revert to pre-ESM levels unless subject to other surveillance measures

Important Dates

  • December 22, 2025: 100% margin applies on all open positions; Stage-II securities shift to Trade-for-Trade with 2% price band under Periodic Call Auction
  • December 23, 2025: 100% margin applies on new positions; MAANALU shifts from EQ/SM to BE/ST series; securities qualifying under ESM shift to Trade-for-Trade segment

Impact Assessment

The enhanced surveillance measures will significantly impact trading in the affected securities. The 100% margin requirement for MAANALU will reduce leverage and potentially decrease trading volumes. The shift to Trade-for-Trade segment eliminates intraday trading opportunities and requires full delivery, which may reduce liquidity. For the six securities moving from Stage-II to Stage-I, there will be some relaxation as they move away from the stricter 2% price band under Periodic Call Auction. Market participants holding positions in these securities should prepare for increased capital requirements and adjusted trading mechanisms. The surveillance measure aims to curb excessive speculation and protect investor interests in securities exhibiting unusual price movements or trading patterns.

Impact Justification

Affects trading parameters for specific securities with margin increases and segment shifts, but limited to a small number of stocks under surveillance framework