Description

NSE announces inclusion of ARVEE and TCIFINANCE in ESM Stage-I with 100% margin requirement and shift to Trade-for-Trade segment effective December 24, 2025.

Summary

NSE has issued circular 986/2025 regarding the Enhanced Surveillance Measure (ESM) framework. Two securities - Arvee Laboratories (India) Limited (ARVEE) and TCI Finance Limited (TCIFINANCE) - have been shortlisted for inclusion under ESM Stage-I. These securities will attract a minimum 100% margin requirement and will be shifted from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST) effective December 24, 2025. No securities are being excluded from the ESM framework or moving between stages.

Key Points

  • Two securities added to ESM Stage-I: ARVEE (INE006Z01016) and TCIFINANCE (INE911B01018)
  • 100% margin requirement applicable on all open positions as on December 23, 2025 and new positions from December 24, 2025
  • Securities will shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST) from December 24, 2025
  • No securities are eligible to move out from ESM framework
  • No securities moving between Stage-I and Stage-II
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely on account of market surveillance and not an adverse action against the company

Regulatory Changes

This circular implements the Enhanced Surveillance Measure framework established under previous circulars NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315. The framework enables NSE to impose additional surveillance measures on securities meeting specific criteria.

Compliance Requirements

  • Market participants must ensure 100% margin is maintained on ARVEE and TCIFINANCE positions
  • Margin requirement applies to: (1) All open positions as on December 23, 2025, and (2) New positions created from December 24, 2025
  • Trading members must adapt to Trade-for-Trade segment rules for these securities from December 24, 2025
  • Securities in Stage-II will trade under periodic call auction with 2% price band

Important Dates

  • December 22, 2025: Circular issued
  • December 23, 2025: 100% margin applies to existing open positions; Stage-II securities move to periodic call auction with 2% price band
  • December 24, 2025: 100% margin applies to new positions; Securities shift from EQ/SM to BE/ST segment

Impact Assessment

Trading Impact: The shift to Trade-for-Trade segment eliminates intraday trading opportunities and requires delivery-based settlement for ARVEE and TCIFINANCE. This significantly reduces liquidity and trading volumes.

Margin Impact: The 100% margin requirement substantially increases capital requirements for holding positions in these securities, likely deterring speculative trading activity.

Market Participant Impact: Traders and investors with existing positions must arrange for increased margin by December 23, 2025. The enhanced surveillance signals elevated risk profile for these securities.

Price Discovery: Trade-for-Trade mechanism may impact price discovery due to reduced trading activity and liquidity constraints.

Impact Justification

Mandatory 100% margin and shift to Trade-for-Trade segment significantly impacts trading in these securities