Description

NSE adds Hardwyn India Limited to ESM Stage-I with 100% margin requirement and shifts it to Trade-for-Trade segment effective January 09, 2026.

Summary

NSE has issued Circular No. 17/2026 regarding the application of Enhanced Surveillance Measure (ESM) framework. Hardwyn India Limited (Symbol: HARDWYN, ISIN: INE626Z01029) has been added to ESM Stage-I effective January 08, 2026. The security will shift from Rolling Settlement segment (EQ/SM series) to Trade-for-Trade segment (BE/ST series) starting January 09, 2026, with a minimum 100% margin requirement on all positions.

Key Points

  • Hardwyn India Limited added to ESM Stage-I framework
  • 100% margin requirement applicable on all open positions as on January 08, 2026 and new positions from January 09, 2026
  • Security shifts from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST) effective January 09, 2026
  • No securities are being excluded from ESM framework or moving between stages
  • No securities moving from Stage-I to Stage-II or vice versa
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

The Enhanced Surveillance Measure (ESM) is a surveillance framework implemented by NSE to monitor securities exhibiting abnormal price movements or other concerning trading patterns. Securities under ESM Stage-I are subject to:

  • Minimum 100% margin on all positions (open and new)
  • Shift to Trade-for-Trade segment (no intraday trading)
  • Securities moving to Stage-II face additional restrictions including 2% price band under Periodic Call Auction

This circular references previous ESM 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).

Compliance Requirements

For Trading Members:

  • Ensure 100% margin collection on Hardwyn India Limited positions from January 09, 2026
  • Apply margin requirements on both existing open positions (as on January 08, 2026) and new positions created from January 09, 2026
  • Update systems to reflect Trade-for-Trade segment classification for HARDWYN
  • Note that intraday trading will not be permitted in this security

For Investors:

  • All purchases and sales must result in delivery (no intraday squaring off)
  • Full upfront margin payment required for trading in this security
  • Positions will attract 100% margin requirement

Important Dates

  • January 07, 2026: Circular issued
  • January 08, 2026: ESM Stage-I becomes applicable for Hardwyn India Limited; 100% margin applies to existing open positions
  • January 09, 2026: Security shifts from EQ/SM to BE/ST series; 100% margin applies to all new positions; Trade-for-Trade trading begins

Impact Assessment

Market Impact:

  • Significantly reduced liquidity for Hardwyn India Limited as intraday trading is prohibited
  • Higher capital requirements due to 100% margin mandate will likely reduce trading volumes
  • Price discovery may be affected due to Trade-for-Trade restrictions
  • Existing position holders will face increased margin requirements

Operational Impact:

  • Trading members must update risk management systems to enforce 100% margins
  • Brokers need to communicate changes to clients holding or interested in trading HARDWYN
  • Settlement processes shift to compulsory delivery-based settlement

Investor Impact:

  • High impact on traders and speculators due to elimination of leverage and intraday trading
  • Increased holding costs due to full margin requirements
  • Potential difficulty in exiting positions due to reduced liquidity

NSE clarifies that ESM shortlisting is purely for market surveillance purposes and should not be construed as adverse action against the company. For detailed information on ESM framework, market participants can refer to NSE’s FAQs at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm or contact surveillance@nse.co.in for queries.

Impact Justification

High impact on Hardwyn India Limited as it shifts to Trade-for-Trade segment with 100% margin requirement, significantly restricting trading activity and liquidity for this security.