Description

NSE notifies changes to Enhanced Surveillance Measure framework with two securities moving from Stage I to Stage II, effective February 4-5, 2026.

Summary

NSE has issued updates to the Enhanced Surveillance Measure (ESM) framework. Two securities - Cura Technologies Limited (CURAA) and Globesecure Technologies Limited (GSTL) - will move from ESM Stage I to Stage II effective February 4, 2026. These securities will attract 100% minimum margin and shift from rolling settlement to Trade-for-Trade segment. No new securities are being added to or removed from the ESM framework.

Key Points

  • No new securities added to ESM Stage I
  • Two securities (CURAA and GSTL) moving from Stage I to Stage II
  • No securities moving from Stage II to Stage I
  • No securities being excluded from ESM framework
  • 100% minimum margin applicable on all open and new positions
  • Securities to shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) segment
  • Stage II securities subject to 2% price band under Periodic Call Auction
  • ESM framework operates in conjunction with other surveillance measures
  • Consolidated ESM list includes Anondita Medicare Limited and Dhariwalcorp Limited 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 under Trade for Trade with a 2% price band under Periodic Call Auction mechanism.

Compliance Requirements

  • Members must ensure 100% minimum margin on all open positions as on February 4, 2026
  • 100% minimum margin required on new positions created from February 5, 2026
  • Trading in affected securities only through Trade-for-Trade mechanism
  • Stage II securities subject to Periodic Call Auction with 2% price band
  • Market participants should note ESM is a surveillance measure and not an adverse action against companies

Important Dates

  • February 3, 2026: Circular issued (Circular Ref. No: 86/2026)
  • February 4, 2026: Securities moving to Stage II come under Trade for Trade with 2% price band under Periodic Call Auction
  • February 4, 2026: 100% margin applicable on all open positions
  • February 5, 2026: Securities shift from Rolling Settlement to Trade-for-Trade segment
  • February 5, 2026: 100% margin applicable on new positions created from this date

Impact Assessment

Market Impact: Two securities (CURAA and GSTL) face stricter surveillance with reduced liquidity due to Trade-for-Trade mechanism and 2% price band restrictions. The 100% margin requirement will significantly increase capital requirements for traders holding positions in these securities.

Operational Impact: Brokers and members must adjust risk management systems to enforce 100% margins and restrict trading to T2T mechanism. The Periodic Call Auction mechanism for Stage II securities will reduce intraday trading opportunities.

Investor Impact: Investors in CURAA and GSTL will experience reduced liquidity, wider bid-ask spreads, and higher capital requirements. The 2% price band may limit price discovery but provides protection against excessive volatility.

Impact Justification

Affects specific securities under ESM with margin and trading mechanism changes; two securities moving to stricter Stage II surveillance