Description

NSE updates Enhanced Surveillance Measure (ESM) framework with new securities inclusion, exclusions, and stage movements effective December 26-29, 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework effective December 26-29, 2025. Marinetrans India Limited has been added to ESM Stage-I, requiring 100% margin on all positions. Securities under ESM will be shifted from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series). Securities moving to Stage II will be subject to Trade-for-Trade with 2% price band under Periodic Call Auction. The consolidated list includes Alps Industries Limited and ASL Industries Limited among others.

Key Points

  • Marinetrans India Limited (INE0P1P01017) added to ESM Stage-I effective December 26, 2025
  • 100% margin requirement applicable from December 29, 2025 on all open and new positions
  • Securities will shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST) effective December 29, 2025
  • Stage II securities will be under Trade-for-Trade with 2% price band under Periodic Call Auction from December 26, 2025
  • No securities moving from Stage I to Stage II or vice versa
  • No securities being excluded from ESM framework in this update
  • Consolidated ESM list includes Alps Industries Limited (Stage II) and ASL Industries Limited among others
  • Marinetrans India Limited series will change from SM to ST as per earlier circular NSE/SURV/71933 dated December 22, 2025

Regulatory Changes

The Enhanced Surveillance Measure (ESM) framework continues to operate in conjunction with all other prevailing surveillance measures. Securities qualifying under ESM are automatically shifted to Trade-for-Trade segment with enhanced margin requirements. The framework is purely a market surveillance tool and should not be construed as adverse action against the concerned company or entity.

Compliance Requirements

  • Members must ensure 100% margin on all open positions as on December 26, 2025 for securities listed in Annexure I
  • 100% margin must be collected on new positions created from December 29, 2025
  • Trading members must adapt to Trade-for-Trade settlement mechanism for affected securities
  • For Stage II securities, members must comply with 2% price band restrictions under Periodic Call Auction from December 26, 2025
  • Members should refer to FAQs at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm for detailed information
  • Queries can be directed to surveillance@nse.co.in

Important Dates

  • December 24, 2025: Circular issued
  • December 26, 2025: ESM Stage-I inclusion effective; Stage II securities shift to Periodic Call Auction with 2% price band
  • December 29, 2025: 100% margin requirement becomes applicable; Securities shift from Rolling Settlement to Trade-for-Trade segment

Impact Assessment

High Impact on Trading Operations: The 100% margin requirement significantly increases capital requirements for market participants holding or trading affected securities. The shift to Trade-for-Trade segment eliminates intraday trading opportunities and requires full settlement for each transaction. For Stage II securities, the 2% price band under Periodic Call Auction further restricts price movement and liquidity. Market participants must adjust their trading strategies and ensure adequate margin availability. The measure aims to curb excessive speculation and ensure market stability in securities exhibiting unusual price or volume patterns.

Impact Justification

High severity due to 100% margin requirement and shift to Trade-for-Trade segment affecting trading operations for listed securities under ESM framework