Description

NSE shifts five securities from rolling segment to Trade for Trade segment with 5% price band effective January 08, 2026 as surveillance measure.

Summary

NSE has issued surveillance measures shifting five securities from the rolling segment to Trade for Trade segment with a 5% or lower price band, effective January 08, 2026. This action is taken to ensure market safety and safeguard investor interests. The affected securities will be settled on a trade-to-trade basis with no netting off allowed, and will move from EQ/SM series to BE/ST series.

Key Points

  • Five securities moved from Rolling segment (EQ series) to Trade for Trade segment (BE series) with 5% price band
  • All five securities flagged due to Price Earnings Multiple, Price Variation & Market Capitalization criteria
  • No securities shifted from SM series to ST series (Nil)
  • Three securities will continue in Trade for Trade segment: NORBTEAEXP, SOMATEX, and SANCO
  • Settlement will be on trade-to-trade basis with no netting off permitted
  • Affected securities will not be available in rolling segment post-implementation

Regulatory Changes

Under Capital Market Segment Trading Regulations Part - A, 2.6, the following changes apply:

Securities Moving to Trade for Trade (BE series):

  1. MANGALAM (Mangalam Drugs and Organics Limited) - INE584F01014
  2. MCL (Madhav Copper Limited) - INE813V01022
  3. NAVKARURB (Navkar Urbanstructure Limited) - INE268H01044
  4. KSR (KSR Footwear Limited) - INE1SPP01016
  5. PRAKASHSTL (Prakash Steelage Limited) - INE696K01024

Securities Continuing in Trade for Trade (BE/BZ series):

  1. NORBTEAEXP (Norben Tea & Exports Limited) - INE369C01017
  2. SOMATEX (Soma Textiles & Industries Limited) - INE314C01013
  3. SANCO (Sanco Industries Limited) - INE782L01012

Compliance Requirements

  • Members must take adequate precaution while trading in these securities
  • Trading will only be available in BE/ST series (Trade for Trade segment)
  • Settlement must be done on trade-to-trade basis
  • No netting off of positions will be allowed
  • Price band restricted to 5% or lower for all affected securities
  • Securities will not be available in rolling segment (EQ/SM series)

Important Dates

  • Circular Date: January 05, 2026
  • Effective Date: January 08, 2026 (Thursday)

Impact Assessment

Trading Impact:

  • Significantly reduced liquidity for affected securities due to trade-to-trade settlement
  • Limited price movement with 5% band restriction
  • No intraday netting off increases capital requirements for traders
  • Position squaring becomes mandatory on same day

Investor Impact:

  • Higher settlement obligations as all trades must be honored individually
  • Reduced speculation and day trading opportunities
  • Compulsory delivery-based trading only
  • Potential difficulty in entry/exit due to liquidity constraints

Market Impact:

  • Enhanced surveillance measure indicates concerns about price manipulation or volatility
  • Not an adverse action against companies but a protective measure for investors
  • Members should exercise heightened caution when dealing in these securities
  • Criteria details available at NSE website under movement-securities-periodic-review

Impact Justification

High impact as affected securities will have restricted trading with trade-to-trade settlement, no netting off allowed, and limited 5% price band, significantly affecting liquidity and trading flexibility for these stocks.