Description

NSE updates the list of securities under Enhanced Surveillance Measure (ESM) framework with movements between stages and exclusions effective January 12, 2026.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework effective January 12, 2026. The circular includes: 1 security entering ESM Stage-I, 1 security moving from Stage-I to Stage-II, 5 securities moving from Stage-II to Stage-I, and 12 securities being excluded from the ESM framework. Securities moving between stages will also experience segment changes between EQ/SM and BE/ST.

Key Points

  • Rollatainers Limited (ROLLT) added to ESM Stage-I and will move from EQ/SM to BE/ST segment on January 13, 2026
  • Sanco Industries Limited (SANCO) escalated from ESM Stage-I to Stage-II
  • 5 securities de-escalated from ESM Stage-II to Stage-I: ASL Industries, Cura Technologies, Gujarat Raffia Industries, KCK Industries, and Latteys Industries
  • 12 securities excluded from ESM framework and will move from BE/ST to EQ/SM segment on January 12, 2026
  • Total of 36 securities remain under ESM framework: 15 in Stage-II and 21 in Stage-I (partially listed)
  • All changes effective from January 12, 2026, with segment changes on specified dates

Regulatory Changes

The ESM framework continues to operate with two stages of surveillance. Securities in higher stages face additional trading restrictions and are placed in the BE/ST (Trade-to-Trade) segment, while those excluded or de-escalated may move to the EQ/SM (Normal) segment. The framework aims to alert investors about securities exhibiting abnormal price movements or other concerning characteristics.

Compliance Requirements

  • Trading members must note the stage changes for affected securities
  • Investors should be aware of the enhanced surveillance status and associated trading restrictions
  • Securities in BE/ST segment will have trade-to-trade settlement with no intraday trading allowed
  • Market participants must comply with additional margin and disclosure requirements applicable to ESM securities

Important Dates

  • January 12, 2026: ESM stage changes effective; 12 securities excluded from ESM move from BE/ST to EQ/SM
  • January 13, 2026: Rollatainers Limited (ROLLT) moves from EQ/SM to BE/ST segment

Impact Assessment

Trading Impact: Securities moving to BE/ST segment will face trade-to-trade settlement, restricting intraday trading and potentially reducing liquidity. Securities excluded from ESM will benefit from relaxed restrictions and normal trading conditions.

Investor Impact: Investors in affected securities should note the enhanced surveillance status, which indicates higher risk profiles. Higher margin requirements and trading restrictions in BE/ST segment may impact trading strategies.

Market Impact: The ESM framework serves as an early warning system for investors. Stage escalations signal increased regulatory concern, while exclusions indicate improved compliance or market behavior. Overall impact is limited to specific securities listed.

Impact Justification

Regular surveillance framework update affecting multiple securities with stage movements and segment changes. Important for investors in listed securities but part of routine surveillance operations.