Description

NSE circular announcing securities moving in/out of Enhanced Surveillance Measure framework with 100% margin requirement and trade-for-trade segment shift effective January 07, 2026.

Summary

NSE has issued updates to the Enhanced Surveillance Measure (ESM) framework. Mahamaya Steel Industries Limited (MAHASTEEL) is moving from ESM Stage-I to Stage-II effective January 06, 2026. Securities under ESM will attract minimum 100% margin and shift from Rolling Settlement segment to Trade-for-Trade segment starting January 07, 2026. No new securities are being added to Stage-I, and no securities are being excluded from the ESM framework.

Key Points

  • No new securities added to ESM Stage-I
  • MAHASTEEL (Mahamaya Steel Industries Limited, ISIN: INE451L01014) moves from Stage-I to Stage-II
  • No securities moving from Stage-II to Stage-I
  • No securities being excluded from ESM framework
  • 100% margin requirement applies to all open positions as on January 06, 2026 and new positions from January 07, 2026
  • Securities in ESM will shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series)
  • Stage-II securities will be under Trade-for-Trade with 2% price band under Periodic Call Auction
  • ESM framework works in conjunction with all other surveillance measures
  • ESM shortlisting is purely for market surveillance and not an adverse action against companies

Regulatory Changes

The circular implements changes to the Enhanced Surveillance Measure framework as per previous circulars NSE/SURV/56948 (June 02, 2023), NSE/SURV/57609 (July 18, 2023), NSE/SURV/63361 (August 09, 2024), NSE/SURV/64066 (September 20, 2024), NSE/SURV/64400 (October 04, 2024), and NSE/SURV/69315 (July 25, 2025).

Securities qualifying under ESM will be shifted from Rolling Settlement segment to Trade-for-Trade segment, with Stage-II securities additionally subject to Periodic Call Auction with 2% price band.

Compliance Requirements

  • Market participants must ensure 100% margin coverage for all securities under ESM framework
  • Margin requirement applies to both existing open positions (as on January 06, 2026) and new positions created from January 07, 2026
  • Trading members must transition securities from Rolling Settlement to Trade-for-Trade segment
  • For queries, members should contact NSE at surveillance@nse.co.in
  • Refer to NSE FAQs on ESM at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm

Important Dates

  • January 06, 2026: MAHASTEEL moves to ESM Stage-II; Stage-II securities come under Trade-for-Trade with 2% price band under Periodic Call Auction
  • January 07, 2026: 100% margin requirement becomes effective on all open positions and new positions; securities shift from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST)

Impact Assessment

High Impact on Affected Securities: The shift to Trade-for-Trade segment with 100% margin requirement significantly increases capital requirements for traders and reduces liquidity in affected securities. MAHASTEEL traders will face stricter trading conditions with the move to Stage-II, including Periodic Call Auction mechanism with limited 2% price band.

Operational Impact: Brokers and trading members need to ensure adequate margin collection and adjust their risk management systems to accommodate the 100% margin requirement. The transition from Rolling Settlement to Trade-for-Trade will affect settlement procedures and intraday trading strategies.

Market Surveillance Objective: The measure aims to curb excessive volatility and speculative trading in securities exhibiting unusual price movements, protecting investor interests while maintaining market integrity.

Impact Justification

Affects trading framework and margin requirements for securities under ESM, with one stock moving to stricter Stage II surveillance involving 100% margin and trade-for-trade segment shift.