Description

NSE adds Kore Digital Limited to Enhanced Surveillance Measure (ESM) Stage I effective January 21, 2026, with 100% margin requirement and shift to Trade-for-Trade segment.

Summary

NSE has issued Circular 43/2026 regarding the applicability of Enhanced Surveillance Measure (ESM). Kore Digital Limited (Symbol: KDL, ISIN: INE0O4R01018) has been added to ESM Stage I effective January 21, 2026. The security will be shifted from Rolling Settlement segment (EQ/SM series) to Trade-for-Trade segment (BE/ST series) and will attract a minimum 100% margin on all positions. No securities are being excluded from the ESM framework or moving between stages.

Key Points

  • Kore Digital Limited (KDL) added to ESM Stage I framework
  • 100% margin requirement applies to all open positions as on January 20, 2026 and new positions from January 21, 2026
  • Securities will shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST)
  • No securities are being excluded from ESM framework
  • No securities moving from Stage I to Stage II or vice versa
  • ESM framework operates in conjunction with other surveillance measures
  • Consolidated ESM list includes existing securities: Alps Industries Limited, Anondita Medicare Limited, Docmode Health Technologies Limited, and others in Stage II

Regulatory Changes

The Enhanced Surveillance Measure continues to be enforced based on previous circulars (NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315). The current circular implements the framework for securities meeting ESM criteria, specifically adding one new security to Stage I.

Compliance Requirements

  • Members must ensure 100% margin is collected on KDL for all open positions as on January 20, 2026
  • 100% margin applies to all new positions created from January 21, 2026
  • Trading members must adjust systems for Trade-for-Trade settlement for KDL from January 21, 2026
  • Securities in Stage II remain under Trade-for-Trade with 2% price band under Periodic Call Auction
  • Market participants must comply with ESM framework alongside other prevailing surveillance measures

Important Dates

  • January 19, 2026: Circular issued
  • January 20, 2026: 100% margin applies to all open positions in KDL; Securities shifting to Stage II move to Trade-for-Trade with 2% price band under Periodic Call Auction
  • January 21, 2026: KDL shifts from EQ/SM to BE/ST series; 100% margin applies to all new positions in KDL

Impact Assessment

Trading Impact: Kore Digital Limited faces severe trading restrictions with shift to Trade-for-Trade segment, eliminating intraday trading opportunities and requiring delivery-based settlement only. This will significantly reduce liquidity and trading volumes.

Margin Impact: The 100% margin requirement substantially increases capital requirements for traders and investors holding or trading KDL, making positions more expensive to maintain.

Market Perception: Inclusion in ESM, while stated as surveillance-based and not adverse action against the company, typically signals heightened regulatory scrutiny due to unusual price movements or volatility patterns.

Investor Considerations: Existing shareholders and potential investors should note the restricted trading framework and increased costs associated with ESM-listed securities. The measure aims to curb excessive speculation and ensure orderly market conditions.

For detailed information, market participants can refer to the ESM FAQs at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm or contact surveillance@nse.co.in for queries.

Impact Justification

High impact due to 100% margin requirement and shift to Trade-for-Trade segment with restricted trading, significantly affecting liquidity and trading conditions for affected security.