Description

NSE updates Enhanced Surveillance Measure framework with one security moving from Stage I to Stage II and consolidated list of securities under ESM.

Summary

NSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective February 2-3, 2026. Exim Routes Limited (EXIMROUTES) will move from ESM Stage I to Stage II. No new securities are being added to Stage I, no securities are moving from Stage II to Stage I, and no securities are being excluded from the ESM framework. The consolidated ESM list includes at least 5 securities across both stages.

Key Points

  • No new securities added to ESM Stage I
  • Exim Routes Limited (EXIMROUTES, ISIN: INE19I001020) moves from Stage I to Stage II effective February 2, 2026
  • No securities moving from Stage II to Stage I
  • No securities being excluded from ESM framework
  • Securities under ESM attract minimum 100% margin on all open and new positions
  • Securities qualifying under ESM shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST)
  • Stage II securities trade under Trade-for-Trade with 2% price band under Periodic Call Auction
  • Consolidated list includes: Anondita Medicare Limited, Dhariwalcorp Limited, Docmode Health Technologies Limited, Divine Power Energy Limited, and Exim Routes Limited (partial list visible)

Regulatory Changes

The ESM framework continues as per previous circulars (NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315). Securities under ESM framework are subject to:

  • Minimum 100% margin requirement on all positions
  • Shift from Rolling Settlement to Trade-for-Trade segment
  • Stage II securities additionally face 2% price band restriction under Periodic Call Auction mechanism
  • ESM measures apply in conjunction with all other prevailing surveillance measures

Compliance Requirements

  • Members must ensure minimum 100% margin is collected for ESM securities effective February 3, 2026
  • Margin applies to open positions as on February 2, 2026 and new positions from February 3, 2026
  • Trading members must note the segment change from EQ/SM to BE/ST for affected securities
  • Stage II securities (including EXIMROUTES from February 2, 2026) trade only in Periodic Call Auction with 2% price band
  • Members should monitor the consolidated ESM list (Annexure III) for all securities under the framework

Important Dates

  • February 2, 2026: Exim Routes Limited moves to Stage II ESM; Stage II securities begin trading under Periodic Call Auction with 2% price band
  • February 3, 2026: 100% margin requirement becomes effective on all open positions and new positions; securities shift from Rolling Settlement to Trade-for-Trade segment

Impact Assessment

The impact is limited as no new securities are entering ESM Stage I and only one security (EXIMROUTES) is moving to the stricter Stage II framework. The 100% margin requirement and Trade-for-Trade restriction will reduce liquidity in affected securities. For Exim Routes Limited specifically, the additional 2% price band under Periodic Call Auction starting February 2, 2026 will further constrain trading activity. The ESM framework is a surveillance measure and should not be construed as adverse action against the companies. Market participants trading in the consolidated list of ESM securities should prepare for higher capital requirements and reduced trading flexibility.

Impact Justification

Routine surveillance update affecting limited securities with one stock moving to stricter Stage II ESM framework