Description

NSE adds four securities (AUSOMENT, BESTAGRO, MILTON, SMVD) to Enhanced Surveillance Measure Stage I with 100% margin requirement and Trade-for-Trade segment shift effective January 22, 2026.

Summary

NSE has invoked Enhanced Surveillance Measure (ESM) Stage I on four securities effective January 22, 2026. These securities - Ausom Enterprise Limited (AUSOMENT), Best Agrolife Limited (BESTAGRO), Milton Industries Limited (MILTON), and SMVD Poly Pack Limited (SMVD) - will be subject to minimum 100% margin requirement and shifted from Rolling Settlement segment to Trade-for-Trade segment. This measure is applied purely on account of market surveillance and should not be construed as adverse action against the companies.

Key Points

  • Four securities added to ESM Stage I: AUSOMENT, BESTAGRO, MILTON, SMVD
  • 100% margin requirement applicable on all open positions as on January 21, 2026 and new positions from January 22, 2026
  • Securities will shift from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  • No securities moving between Stage I and Stage II
  • No securities being excluded from ESM framework
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Action is purely surveillance-based, not adverse action against companies

Regulatory Changes

Enhanced Surveillance Measure Stage I Application:

  • Minimum 100% margin requirement imposed on affected securities
  • Segment shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade (BE/ST series)
  • No intraday trading allowed in Trade-for-Trade segment
  • Securities under Stage II continue to have Trade-for-Trade with 2% price band under Periodic Call Auction

Reference Circulars:

  • NSE/SURV/56948 dated June 02, 2023
  • NSE/SURV/57609 dated July 18, 2023
  • NSE/SURV/63361 dated August 09, 2024
  • NSE/SURV/64066 dated September 20, 2024
  • NSE/SURV/64400 dated October 04, 2024
  • NSE/SURV/69315 dated July 25, 2025

Compliance Requirements

For Trading Members:

  • Collect minimum 100% margin from clients on affected securities
  • Apply margin on both existing open positions as on January 21, 2026 and new positions from January 22, 2026
  • Ensure trades in affected securities are settled on Trade-for-Trade basis from January 22, 2026
  • No intraday squaring off allowed in affected securities
  • Comply with all prevailing surveillance measures in conjunction with ESM

For Investors:

  • Full upfront margin required for trading in affected securities
  • Compulsory delivery-based trading only (no intraday trading)
  • Enhanced monitoring of trading activity by exchange

Important Dates

  • January 20, 2026: Circular issued
  • January 21, 2026: Last day of Rolling Settlement for affected securities; 100% margin applicable on open positions
  • January 22, 2026: ESM Stage I effective date; securities shift to Trade-for-Trade segment (BE/ST series); 100% margin on new positions

Impact Assessment

Market Impact:

  • Significantly restricted liquidity in affected securities due to Trade-for-Trade requirement
  • Elimination of intraday trading opportunities
  • Higher capital requirement (100% margin) may deter speculative trading
  • Potential reduction in trading volumes for AUSOMENT, BESTAGRO, MILTON, and SMVD

Investor Impact:

  • Retail and institutional investors must provide full upfront margin
  • Only delivery-based positions allowed; no leverage available
  • Increased surveillance scrutiny on trading patterns
  • Existing open positions as on January 21, 2026 subject to 100% margin requirement

Operational Impact:

  • Brokers must update margin collection systems immediately
  • Risk management systems need reconfiguration for affected securities
  • Client communication required regarding trading restrictions
  • Settlement process changes from T+1 Rolling to Trade-for-Trade basis

Securities Details (ISINs):

  • Ausom Enterprise Limited: INE218C01016
  • Best Agrolife Limited: INE052T01021
  • Milton Industries Limited: INE376Y01016
  • SMVD Poly Pack Limited: INE702Y01013

For more information, refer to NSE’s ESM FAQs at: https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm

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

Impact Justification

Significant impact on affected securities with 100% margin requirement and shift to Trade-for-Trade segment, restricting intraday trading and requiring full upfront margin