Description

NSE updates Enhanced Surveillance Measure framework with two securities added to Stage I and 100% margin requirement effective February 04, 2026.

Summary

NSE has updated its Enhanced Surveillance Measure (ESM) framework, adding two securities to Stage I effective February 03, 2026. The affected securities will attract a minimum 100% margin requirement and will be shifted from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST) starting February 04, 2026. This surveillance action applies to both open positions as on February 03, 2026 and new positions created from February 04, 2026 onwards.

Key Points

  • Two securities added to ESM Stage I: Paras Petrofils Limited (PARASPETRO) and Vilin Bio Med Limited (VILINBIO)
  • No securities moving between Stage I and Stage II
  • No securities being excluded from ESM framework
  • Securities shifting to Stage II will be under Trade for Trade with 2% price band under Periodic Call Auction
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • This is a market surveillance action and not an adverse action against the companies

Regulatory Changes

The circular implements the following changes under the Enhanced Surveillance Measure framework:

  1. Stage I Additions: PARASPETRO and VILINBIO newly included in ESM Stage I
  2. Segment Transfer: Securities will move from Rolling Settlement (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  3. Margin Requirements: Minimum 100% margin applicable on all positions
  4. Stage II Requirements: Securities in Stage II operate under Trade for Trade with 2% price band under Periodic Call Auction mechanism

Compliance Requirements

For Market Participants:

  • Ensure adequate margin coverage of 100% minimum for positions in affected securities
  • Adjust trading strategies for Trade-for-Trade settlement requirement
  • Monitor consolidated list of ESM securities (currently includes ANONDITA and DHARIWAL in Stage II)
  • Comply with all prevailing surveillance measures applicable to these securities

For Brokers/Trading Members:

  • Update risk management systems to reflect new margin requirements
  • Communicate changes to clients holding positions in affected securities
  • Direct queries to surveillance@nse.co.in

Important Dates

  • February 02, 2026: Circular issued (Circular Ref. No: 81/2026, Download Ref: NSE/SURV/72575)
  • February 03, 2026: Securities added to ESM Stage I; 100% margin applicable on open positions; Stage II securities move to Periodic Call Auction with 2% price band
  • February 04, 2026: 100% margin applicable on new positions; segment shift from EQ/SM to BE/ST effective

Impact Assessment

Trading Impact:

  • Significantly reduced liquidity for PARASPETRO and VILINBIO due to Trade-for-Trade requirement
  • Higher capital requirements for traders due to 100% margin mandate
  • Limited intraday trading opportunities in affected securities
  • Potential price volatility during transition period

Market Impact:

  • Enhanced scrutiny indicates potential concerns about price movements or trading patterns
  • Investor confidence may be affected in the short term
  • Long-only investors less impacted compared to active traders

Reference Information:

Impact Justification

Imposition of 100% margin and shift to Trade-for-Trade segment significantly restricts trading for affected securities