Description

NSE announces changes to Enhanced Surveillance Measure framework, including new securities added to ESM Stage-I and securities moving between stages effective January 19-20, 2026.

Summary

NSE has announced updates to the Enhanced Surveillance Measure (ESM) framework effective January 19-20, 2026. Manaksia Aluminium Company Limited has been added to ESM Stage-I, attracting a minimum 100% margin requirement and shifting from rolling settlement (EQ/SM) to trade-for-trade segment (BE/ST). Vipul Limited is moving from Stage-I to Stage-II, which involves trade-for-trade with 2% price band under periodic call auction. Two securities (Century Extrusions Limited and DRS Cargo Movers Limited) are being excluded from the ESM framework.

Key Points

  • Manaksia Aluminium Company Limited (MANAKALUCO) added to ESM Stage-I effective January 19, 2026
  • Vipul Limited (VIPULLTD) moving from ESM Stage-I to Stage-II effective January 19, 2026
  • Securities in ESM Stage-I will attract minimum 100% margin on all open and new positions
  • Securities shifting to Stage-I will move from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST)
  • Stage-II securities will be under Trade-for-Trade with 2% price band under Periodic Call Auction
  • Century Extrusions Limited (CENTEXT) and DRS Cargo Movers Limited (DRSCARGO) excluded from ESM framework
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ESM is purely for market surveillance and not an adverse action against the company

Regulatory Changes

The circular updates the Enhanced Surveillance Measure framework based on 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 meeting ESM criteria face enhanced trading restrictions including mandatory trade-for-trade settlement and increased margin requirements.

Compliance Requirements

  • Market participants must comply with 100% margin requirement for securities under ESM Stage-I
  • Margin applies to all open positions as on January 19, 2026, and new positions from January 20, 2026
  • Trading members must adapt to trade-for-trade settlement mechanism for affected securities
  • For Stage-II securities, participants must operate within 2% price band constraints under periodic call auction mechanism
  • Members should refer to consolidated list in Annexure III for complete list of securities under ESM framework
  • For queries, members may contact surveillance@nse.co.in

Important Dates

  • January 16, 2026: Circular issued
  • January 19, 2026: Stage-II securities come under Trade-for-Trade with 2% price band under Periodic Call Auction; 100% margin becomes applicable on open positions
  • January 20, 2026: Securities shifting to Stage-I move from EQ/SM to BE/ST segment; 100% margin applies on new positions created from this date

Impact Assessment

Trading Impact: Securities under ESM Stage-I face significant trading restrictions with 100% margin requirement, making leveraged trading impossible and substantially increasing capital requirements for traders. The shift to trade-for-trade segment eliminates intraday trading opportunities.

Liquidity Impact: Enhanced surveillance measures typically reduce liquidity as higher margins and trade-for-trade settlement deter speculative activity. Stage-II securities face additional constraints with 2% price band and periodic call auction mechanism.

Investor Impact: Existing position holders in Manaksia Aluminium must arrange for 100% margin by January 19, 2026. Vipul Limited investors will experience more restrictive trading conditions under Stage-II framework.

Market Perception: While NSE clarifies that ESM listing is not adverse action against companies, such measures often signal concerns about price volatility or market manipulation, potentially affecting investor sentiment.

Positive Development: Exclusion of Century Extrusions and DRS Cargo Movers from ESM framework indicates improved market behavior for these securities, with restoration of normal trading conditions.

Impact Justification

High impact on trading as securities face 100% margin requirement, shift to trade-for-trade segment, and Stage-II securities move to periodic call auction with 2% price band