Description

NSE implements Enhanced Surveillance Measure (ESM) for select securities, shifting three stocks to Stage-I with 100% margin requirement and moving two stocks from Stage-II to Stage-I effective January 5-6, 2026.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework, adding three securities to Stage-I (AMIABLE, MCL, VIPULLTD) with immediate effect from January 5-6, 2026. These securities will attract a minimum 100% margin requirement on all positions and will shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series). Additionally, two securities (DHARIWAL, TECHD) are moving from Stage-II back to Stage-I. The circular references previous ESM circulars from 2023-2025.

Key Points

  • Three new securities added to ESM Stage-I: Amiable Logistics (India) Limited (AMIABLE), Madhav Copper Limited (MCL), and Vipul Limited (VIPULLTD)
  • 100% margin requirement applicable on all open positions as of January 5, 2026, and all new positions from January 6, 2026
  • Securities will shift from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) effective January 6, 2026
  • Two securities moving from ESM Stage-II to Stage-I: Dhariwalcorp Limited (DHARIWAL) and TechD Cybersecurity Limited (TECHD)
  • Securities shifting to Stage-II will be under Trade for Trade with 2% price band under Periodic Call Auction
  • No securities being excluded from ESM framework in this update
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

The Enhanced Surveillance Measure (ESM) is a market surveillance tool to monitor securities exhibiting abnormal price movements or trading patterns. Securities qualifying under ESM are subjected to:

  1. Margin Requirements: Minimum 100% margin on all positions (both open and new)
  2. Segment Change: Transfer from Rolling Settlement to Trade-for-Trade segment
  3. Price Band Restrictions: Stage-II securities face 2% price band under Periodic Call Auction
  4. Series Notation: Change from EQ/SM series to BE/ST series for Stage-I securities

The measure is purely surveillance-based and should not be construed as adverse action against the companies.

Compliance Requirements

For NSE Members and Market Participants:

  • Ensure 100% margin is collected/maintained for all positions in affected securities starting January 5, 2026 (for existing positions) and January 6, 2026 (for new positions)
  • Update trading systems to reflect segment changes from EQ/SM to BE/ST series effective January 6, 2026
  • Comply with Trade-for-Trade settlement requirements for affected securities
  • Adhere to applicable price bands for Stage-II securities under Periodic Call Auction
  • Monitor consolidated ESM list provided in Annexure III (referenced but not included in extracted content)
  • Note that ESM operates alongside other surveillance measures

For Queries: Contact surveillance@nse.co.in

Important Dates

  • January 2, 2026: Circular issued (Circular Ref. No: 07/2026)
  • January 5, 2026:
    • 100% margin requirement applies to all open positions in newly added Stage-I securities
    • Securities moving to Stage-II come under Trade for Trade with 2% price band under Periodic Call Auction
    • Effective date for exclusions from ESM framework (none in this circular)
  • January 6, 2026:
    • 100% margin requirement applies to all new positions in Stage-I securities
    • Segment shift from EQ/SM to BE/ST for three new Stage-I securities (AMIABLE, MCL, VIPULLTD)

Impact Assessment

Trading Impact:

  • High liquidity restriction: 100% margin requirement significantly increases capital requirements for traders, likely reducing trading volumes in affected securities
  • No intraday trading: Trade-for-Trade segment eliminates intraday trading opportunities, requiring mandatory delivery
  • Price discovery constraints: 2% price band for Stage-II securities restricts price movements and may impact normal price discovery

Market Participant Impact:

  • Brokers must ensure adequate margin collection systems and client communication
  • Existing position holders must arrange for 100% margin or square off positions before effective date
  • Reduced trading activity may impact brokerage revenues from these securities

Investor Impact:

  • Investors in AMIABLE, MCL, and VIPULLTD face immediate liquidity constraints
  • Heightened surveillance may signal underlying market concerns about these securities
  • Investors should review positions and risk exposure in affected stocks

Company Impact:

  • While NSE clarifies this is not adverse action, ESM designation may negatively impact market perception
  • Reduced liquidity may affect stock valuations and investor sentiment
  • Companies: Amiable Logistics (India) Limited (INE0MTP01013), Madhav Copper Limited (INE813V01022), Vipul Limited (INE946H01037), Dhariwalcorp Limited (INE0YRN01017), TechD Cybersecurity Limited (INE0Y5H01014)

Reference Information:

Impact Justification

Mandatory 100% margin requirement and shift to Trade-for-Trade segment significantly impacts trading for affected securities, restricting liquidity and intraday positions.