Description

NSE announces inclusion of Borana Weaves Limited under ESM Stage-I with 100% margin requirement and shift to Trade-for-Trade segment effective January 30, 2026.

Summary

NSE has issued Circular 65/2026 regarding Enhanced Surveillance Measure (ESM) applicability. One security, Borana Weaves Limited (BORANA), has been shortlisted for inclusion under ESM Stage-I effective January 30, 2026. The security will attract a minimum 100% margin on all open and new positions and will be shifted from Rolling Settlement segment to Trade-for-Trade segment. No securities are being moved between stages or excluded from the ESM framework in this update.

Key Points

  • Borana Weaves Limited (BORANA, ISIN: INE16SF01016) included in ESM Stage-I
  • 100% margin requirement applicable on all open positions as of January 29, 2026
  • 100% margin requirement on new positions created from January 30, 2026
  • Security shifting from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series)
  • 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

Regulatory Changes

The circular implements NSE’s Enhanced Surveillance Measure framework, continuing actions under previous circulars NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315. Securities qualifying under ESM are subject to enhanced margin requirements and trading restrictions to address surveillance concerns.

Compliance Requirements

  • Market participants must ensure 100% margin coverage for BORANA positions from January 30, 2026
  • All trading in BORANA must be conducted in Trade-for-Trade segment (no intraday trading)
  • Members must adjust their risk management systems to account for the enhanced margin requirements
  • Positions existing as of January 29, 2026 will attract the 100% margin from January 30, 2026

Important Dates

  • January 28, 2026: Circular issue date
  • January 29, 2026: Last day before ESM Stage-I implementation for BORANA; securities moving to Stage-II come under Trade-for-Trade with 2% price band under Periodic Call Auction
  • January 30, 2026: Effective date for 100% margin requirement on BORANA; shift to Trade-for-Trade segment (BE/ST series) from Rolling Settlement (EQ/SM series)

Impact Assessment

Market Impact: The inclusion of Borana Weaves Limited under ESM Stage-I significantly restricts trading flexibility by mandating Trade-for-Trade settlement, eliminating intraday trading opportunities. The 100% margin requirement substantially increases capital requirements for traders holding positions in this security.

Liquidity Impact: Trade-for-Trade segment placement typically reduces liquidity as it requires full upfront payment and delivery, discouraging speculative trading activity.

Risk Management: The enhanced surveillance measure serves as a market protection mechanism, indicating elevated surveillance concerns. Market participants should exercise increased caution when trading this security.

Operational Impact: Brokers and trading members must update their systems to reflect the segment change and margin requirements, and communicate these changes to clients holding or interested in trading BORANA.

Note: NSE clarifies that ESM shortlisting is purely a market surveillance action and should not be construed as adverse action against the company.

Impact Justification

High impact due to mandatory 100% margin requirement and shift to Trade-for-Trade segment affecting trading flexibility for BORANA. ESM is a significant surveillance measure affecting liquidity and trading conditions.