Description

NSE updates the list of securities under Enhanced Surveillance Measure (ESM) framework with two securities moving to Stage II and minimum 100% margin requirements effective January 23, 2026.

Summary

NSE has issued an update to its Enhanced Surveillance Measure (ESM) framework. Two securities - Dhariwalcorp Limited (DHARIWAL) and Madhav Copper Limited (MCL) - are being moved from ESM Stage I to Stage II effective January 22, 2026. These securities will attract a minimum 100% margin on all open positions from January 23, 2026, and will be shifted from Rolling Settlement to Trade-for-Trade segment. No new securities are being added to Stage I, and no securities are being excluded from the ESM framework.

Key Points

  • Two securities moving from ESM Stage I to Stage II: DHARIWAL (INE0YRN01017) and MCL (INE813V01022)
  • No new securities added to ESM Stage I
  • No securities excluded from ESM framework
  • Minimum 100% margin requirement applicable on all positions
  • Securities shifted from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series)
  • Stage II securities will have 2% price band under Periodic Call Auction
  • ESM framework operates in conjunction with other surveillance measures
  • Consolidated ESM list includes securities like Alps Industries Limited, Anondita Medicare Limited, and others in Stage II

Regulatory Changes

Securities qualifying under ESM will be shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST). Securities moving to Stage II will be placed under Trade for Trade with a price band of 2% under Periodic Call Auction mechanism. The minimum margin requirement of 100% will apply to both existing open positions and new positions created.

Compliance Requirements

  • Members must ensure minimum 100% margin on all open positions as on January 22, 2026, for affected securities
  • Minimum 100% margin required on new positions created from January 23, 2026
  • Trading in affected securities must be conducted in Trade-for-Trade segment only
  • Price band restrictions of 2% must be observed for Stage II securities
  • Members should refer to the consolidated list in Annexure III for complete ESM coverage
  • For queries, members should contact surveillance@nse.co.in

Important Dates

  • January 21, 2026: Circular issued (Ref: NSE/SURV/72420, Circular 54/2026)
  • January 22, 2026: Securities move to ESM Stage II; Trade for Trade with 2% price band under Periodic Call Auction begins
  • January 23, 2026: Minimum 100% margin effective on all open positions; shift from Rolling Settlement to Trade-for-Trade segment; 100% margin on new positions begins

Impact Assessment

The impact is limited to two specific securities (DHARIWAL and MCL) and their trading members. The enhanced surveillance measures will significantly restrict trading flexibility through trade-for-trade settlement, higher margin requirements (100%), and price band limitations (2%). This may reduce liquidity and trading volumes in these securities. The measure is purely surveillance-driven and should not be construed as adverse action against the companies. Market participants holding positions in these securities need to arrange for higher margins and adjust their trading strategies to accommodate the trade-for-trade and periodic call auction framework.

Impact Justification

Two securities moving to ESM Stage II with enhanced restrictions including trade-for-trade settlement, 2% price band, and periodic call auction. Affects trading and margin requirements for these specific stocks.