Description

NSE adds Ascom Leasing and Excellent Wires to Enhanced Surveillance Measure Stage I with 100% margin requirement and trade-for-trade settlement effective January 29, 2026.

Summary

NSE has announced the inclusion of two securities under Enhanced Surveillance Measure (ESM) Stage I effective January 29, 2026. The affected securities—Ascom Leasing & Investments Limited and Excellent Wires and Packaging Limited—will be subject to a minimum 100% margin requirement and shifted from rolling settlement to trade-for-trade segment. This surveillance action is taken to safeguard market integrity and does not constitute adverse action against the companies.

Key Points

  • Two securities added to ESM Stage I: ASCOM (Ascom Leasing & Investments Limited) and EXCELLENT (Excellent Wires and Packaging Limited)
  • 100% minimum margin applicable on all open positions as on January 28, 2026, and new positions from January 29, 2026
  • Securities shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  • No securities moving from Stage I to Stage II or vice versa
  • No securities being excluded from ESM framework
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Action is purely surveillance-based and not an adverse action against the companies

Regulatory Changes

The Enhanced Surveillance Measure framework continues to be applied based on predefined criteria. Securities qualifying under ESM are subject to:

  1. Margin Requirements: Minimum 100% margin on all positions
  2. Settlement Changes: Shift from rolling settlement to trade-for-trade settlement
  3. Series Migration: Movement from EQ/SM series to BE/ST series
  4. Stage II Provisions: Securities moving to Stage II will be under trade-for-trade with 2% price band under Periodic Call Auction (though no securities moved to Stage II in this circular)

This measure references 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).

Compliance Requirements

For Trading Members:

  • Ensure 100% margin collection on all open positions in ASCOM and EXCELLENT as on January 28, 2026
  • Apply 100% margin on all new positions in these securities from January 29, 2026
  • Update trading systems to reflect trade-for-trade settlement for these securities
  • Inform clients holding positions in these securities about the enhanced margin requirements

For Investors:

  • Maintain adequate margins (100% minimum) for positions in affected securities
  • Note that these securities will only be available for delivery-based trading (trade-for-trade)
  • Intraday trading will not be possible in these securities

Additional Information:

Important Dates

  • January 27, 2026: Circular issued (Circular Ref. No: 63/2026)
  • January 28, 2026: 100% margin applicable on all open positions in ASCOM and EXCELLENT
  • January 29, 2026:
    • 100% margin applicable on new positions
    • Securities shifted from EQ/SM to BE/ST series (trade-for-trade settlement begins)
    • EXCELLENT specifically noted for EQ/SM to BE/ST transition

Impact Assessment

Market Impact:

  • Liquidity Reduction: Trade-for-trade settlement significantly reduces liquidity as intraday trading is eliminated
  • Trading Volume: Expected decline in trading volumes for affected securities due to delivery-only requirement
  • Price Discovery: May experience reduced price efficiency due to lower liquidity

Operational Impact:

  • Margin Requirements: 100% margin requirement substantially increases capital requirements for traders
  • Position Management: Existing position holders must arrange additional margins or square off positions
  • Settlement Changes: Shift to compulsory delivery settlement affects trading strategies

Investor Impact:

  • Short-term traders and speculators will be discouraged from trading these securities
  • Only delivery-based investors can participate, limiting market participation
  • Increased capital lock-in due to full upfront margin requirement

Risk Mitigation:

  • The ESM framework aims to protect investor interests by curbing excessive speculation
  • Enhanced margins reduce leverage-related risks in securities showing concerning trading patterns
  • The measure is surveillance-based and not a reflection on company fundamentals

Scope: The consolidated ESM list includes multiple securities across Stage I and Stage II, with this circular adding 2 securities to Stage I. The framework remains dynamic with regular reviews for inclusion and exclusion based on surveillance criteria.

Impact Justification

Requires immediate action with 100% margin on affected securities and shifts them to trade-for-trade segment, significantly impacting trading liquidity and position management