Description

NSE updates the list of securities under Enhanced Surveillance Measure framework with new inclusions, exclusions, and stage movements effective December 29-30, 2025.

Summary

NSE has issued updates to its Enhanced Surveillance Measure (ESM) framework effective December 29-30, 2025. Securities under ESM will attract a minimum 100% margin on all positions and be shifted from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST). Two securities are moving from Stage I to Stage II, two are moving from Stage II to Stage I, and one security (AHCL - Anlon Healthcare Limited) is being excluded from the ESM framework.

Key Points

  • No new securities are being added to ESM Stage I
  • Two securities moving from Stage I to Stage II: Divine Hira Jewellers Limited (DIVINEHIRA) and Teerth Gopicon Limited (TGL)
  • Two securities moving from Stage II to Stage I: Nephro Care India Limited (NEPHROCARE) and Tankup Engineers Limited (TANKUP)
  • One security being excluded from ESM framework: Anlon Healthcare Limited (AHCL)
  • All ESM securities will shift from Rolling Settlement to Trade-for-Trade segment
  • Securities moving to Stage II will be under Trade for Trade with 2% price band under Periodic Call Auction
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • ESM shortlisting is purely for market surveillance and not an adverse action against companies

Regulatory Changes

  • Minimum 100% margin requirement applies to all open positions and new positions in ESM securities
  • Securities under ESM will be shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  • Stage II securities will operate under Periodic Call Auction mechanism with restricted 2% price band
  • Price bands for securities exiting the framework will be reinstated to pre-ESM levels, subject to no other surveillance measures being applicable

Compliance Requirements

  • Members must ensure 100% margin is collected for all ESM securities effective December 30, 2025
  • Margin applies to both existing open positions as on December 29, 2025 and new positions from December 30, 2025
  • Trading members must adapt to Trade-for-Trade settlement requirements for affected securities
  • Stage II securities can only be traded through Periodic Call Auction with 2% price band from December 29, 2025

Important Dates

  • December 26, 2025: Circular issuance date
  • December 29, 2025: Stage II securities shift to Trade-for-Trade with 2% price band under Periodic Call Auction; securities move between stages; AHCL excluded from ESM
  • December 30, 2025: 100% margin becomes effective on all positions; all ESM securities shift to Trade-for-Trade segment (BE/ST)

Impact Assessment

High Impact on Trading:

  • 100% margin requirement significantly increases capital requirements for traders holding ESM securities
  • Trade-for-Trade mechanism eliminates intraday trading opportunities and requires full upfront payment
  • 2% price band restriction on Stage II securities severely limits price movement and liquidity
  • Periodic Call Auction mechanism for Stage II securities reduces trading frequency to specific auction sessions

Affected Securities:

  • DIVINEHIRA and TGL: Escalation to Stage II indicates heightened surveillance concerns with stricter trading restrictions
  • NEPHROCARE and TANKUP: De-escalation to Stage I provides slight relief but still under enhanced surveillance
  • AHCL: Complete removal from ESM framework allows return to normal trading conditions

Market Participants:

  • Existing position holders must arrange additional margin by December 30, 2025
  • Liquidity likely to decrease significantly in affected securities due to trading restrictions
  • Investors should review exposure to these securities given increased trading costs and reduced flexibility

Impact Justification

High impact due to mandatory 100% margin requirements, shift to Trade-for-Trade segment, and 2% price band restrictions for affected securities under periodic call auction