Description

NSE implements Enhanced Surveillance Measure on Goyal Aluminiums Limited with 100% margin requirement and shifts Divine Power Energy Limited to Stage-II ESM framework effective January 9-12, 2026.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework effective January 9-12, 2026. Goyal Aluminiums Limited (GOYALALUM) has been included in ESM Stage-I and will attract a minimum 100% margin requirement on all positions. The security will be shifted from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST). Divine Power Energy Limited (DPEL) is being moved from ESM Stage-I to Stage-II with stricter trading conditions including periodic call auction with 2% price band.

Key Points

  • GOYALALUM (INE705X01026) added to ESM Stage-I framework
  • 100% margin requirement applicable on all open positions as of January 9, 2026, and new positions from January 12, 2026
  • GOYALALUM to shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series) from January 12, 2026
  • DPEL (Divine Power Energy Limited, INE0SCO01019) moving from Stage-I to Stage-II ESM
  • Stage-II securities placed under Trade-for-Trade with 2% price band under Periodic Call Auction from January 9, 2026
  • No securities excluded from ESM framework in this update
  • No securities moving from Stage-II back to Stage-I
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

The circular implements changes to the Enhanced Surveillance Measure framework originally established through circulars NSE/SURV/56948 (June 2, 2023), NSE/SURV/57609 (July 18, 2023), NSE/SURV/63361 (August 9, 2024), NSE/SURV/64066 (September 20, 2024), NSE/SURV/64400 (October 4, 2024), and NSE/SURV/69315 (July 25, 2025).

Stage-I ESM now includes:

  • Minimum 100% margin on all positions
  • Shift to Trade-for-Trade segment (no intraday trading)
  • Settlement in demat form only

Stage-II ESM features:

  • Trade-for-Trade segment with no intraday trading
  • Periodic Call Auction mechanism
  • 2% price band restriction
  • Enhanced margin requirements

Compliance Requirements

For Market Participants:

  • Ensure adequate margin coverage of 100% for GOYALALUM positions by January 12, 2026
  • Adjust trading strategies for affected securities moving to Trade-for-Trade segment
  • Note segment series changes: EQ/SM to BE/ST for Stage-I securities
  • Prepare for Periodic Call Auction trading mechanism for Stage-II securities
  • Maintain compliance with all existing surveillance measures in conjunction with ESM

For Members:

  • Review client positions in affected securities
  • Communicate margin requirements and trading restrictions to clients
  • Update risk management systems for new ESM classifications

Important Dates

  • January 8, 2026: Circular issuance date
  • January 9, 2026:
    • ESM changes become effective
    • 100% margin applicable on existing open positions in GOYALALUM
    • DPEL shifts to Stage-II with Periodic Call Auction and 2% price band
  • January 12, 2026:
    • GOYALALUM shifts from EQ/SM to BE/ST segment
    • 100% margin applicable on new positions created in GOYALALUM

Impact Assessment

Market Impact:

  • GOYALALUM: Severe liquidity impact due to 100% margin requirement and Trade-for-Trade segment classification. No intraday trading permitted, which will significantly reduce trading volumes and liquidity.
  • DPEL: Movement to Stage-II represents escalation of surveillance concerns. Periodic Call Auction with 2% price band will restrict price discovery and trading flexibility.

Operational Impact:

  • Increased margin requirements will tie up additional capital for traders holding positions
  • Trade-for-Trade mechanism requires delivery-based settlement, eliminating speculative intraday positions
  • Periodic Call Auction restricts continuous trading, affecting order execution and timing
  • Price band limitation may prevent fair price discovery during volatile periods

Investor Considerations:

  • ESM classification indicates heightened surveillance concerns but should not be construed as adverse action against the company
  • Enhanced margins and trading restrictions aim to curb excessive speculation
  • Investors should review positions and assess risk-reward given new trading constraints
  • Historical volatility and price movements likely triggered ESM inclusion criteria

For detailed information on ESM framework, refer to NSE FAQs at: https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm

Queries may be directed to: surveillance@nse.co.in

Impact Justification

Affects trading status and margin requirements for securities under ESM framework. GOYALALUM faces 100% margin and segment shift to Trade-for-Trade. DPEL moves to Stage-II with periodic call auction and 2% price band, significantly impacting liquidity and trading conditions.