Description

NSE adds CPS Shapers, Swaraj Suiting, and Wol 3D India to ESM Stage I framework with 100% margin requirement effective December 31, 2025.

Summary

NSE has included 3 securities under Enhanced Surveillance Measure (ESM) Stage I framework effective December 30-31, 2025. The affected securities are C P S Shapers Limited, Swaraj Suiting Limited, and Wol 3D India Limited. These securities will attract a minimum 100% margin requirement and will be shifted from Rolling Settlement to Trade-for-Trade segment. No securities are being excluded from the ESM framework or moving between stages.

Key Points

  • 3 new securities added to ESM Stage I: CPS (INE0QBU01012), SWARAJ (INE0GMR01016), and WOL3D (INE0OO201011)
  • 100% margin requirement applies to all open positions as on December 30, 2025 and new positions from December 31, 2025
  • Securities will shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST) from December 31, 2025
  • CPS Shapers and Swaraj Suiting will move from EQ/SM to BE/ST series
  • No securities being excluded from ESM framework (Annexure II is Nil)
  • No securities moving between Stage I and Stage II
  • ESM framework operates in conjunction with all other surveillance measures

Regulatory Changes

Enhanced Surveillance Measure implementation for the 3 securities includes:

  • Shift to Trade-for-Trade settlement mechanism (no intraday squaring off allowed)
  • Minimum 100% margin requirement on all positions
  • Securities qualifying under ESM moved from series EQ/SM to BE/ST
  • Framework is surveillance-based and not an adverse action against the companies

Compliance Requirements

  • Market participants must ensure 100% margin is available for open positions in these securities as on December 30, 2025
  • All new positions from December 31, 2025 require 100% upfront margin
  • Trading members must adapt to Trade-for-Trade settlement for CPS and SWARAJ from December 31, 2025
  • Members should review client positions and communicate margin requirements
  • Queries can be directed to surveillance@nse.co.in

Important Dates

  • December 29, 2025: Circular issuance date
  • December 30, 2025: ESM Stage I inclusion effective date, 100% margin applies to existing open positions
  • December 31, 2025: Securities shift from Rolling Settlement to Trade-for-Trade segment, 100% margin applies to all new positions

Impact Assessment

Market Impact: Limited to holders and traders of the 3 affected securities. Trade-for-Trade mechanism will reduce liquidity and eliminate intraday trading opportunities.

Trading Impact: 100% margin requirement significantly increases capital requirements for taking positions. Traders cannot use leverage, impacting trading volumes.

Investor Impact: Existing position holders must ensure sufficient margins by December 30, 2025 or face potential square-off. Buy-and-hold investors less affected but selling liquidity may be constrained.

Operational Impact: Brokers need to update risk management systems, communicate with clients holding these securities, and ensure margin collection compliance.

Impact Justification

Affects 3 specific securities with enhanced margin and trading restrictions, limited market-wide impact but significant for holders of these stocks