Description

NSE announces inclusion of new securities under Enhanced Surveillance Measure (ESM) framework with 100% margin requirement and stage transitions effective February 9-10, 2026.

Summary

NSE has issued updates to the Enhanced Surveillance Measure (ESM) framework affecting multiple securities. Two new securities (Neptune Petrochemicals Limited and Tijaria Polypipes Limited) will be included in ESM Stage-I with 100% margin requirement effective February 10, 2026. One security (Gretex Corporate Services Limited) will move from Stage-I to Stage-II, while four securities will move from Stage-II back to Stage-I. Securities qualifying under ESM will shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST), and Stage-II securities will operate under Periodic Call Auction with 2% price band.

Key Points

  • Two securities added to ESM Stage-I: Neptune Petrochemicals Limited (NEPTUNE) and Tijaria Polypipes Limited (TIJARIA)
  • Minimum 100% margin applicable on all open positions as on February 09, 2026, and new positions from February 10, 2026
  • Securities shifting from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST) effective February 10, 2026
  • One security moving from Stage-I to Stage-II: Gretex Corporate Services Limited (GCSL)
  • Four securities moving from Stage-II to Stage-I: Anondita Medicare Limited (ANONDITA), Docmode Health Technologies Limited (DHTL), Norben Tea & Exports Limited (NORBTEAEXP), and Soma Textiles & Industries Limited (SOMATEX)
  • Stage-II securities will be under Trade-for-Trade with 2% price band under Periodic Call Auction effective February 09, 2026
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and not an adverse action against the company

Regulatory Changes

The circular implements changes to the Enhanced Surveillance Measure (ESM) framework originally introduced through circulars dated June 02, 2023, July 18, 2023, August 09, 2024, September 20, 2024, October 04, 2024, and July 25, 2025. Securities under ESM Stage-II will now trade under Periodic Call Auction mechanism with restricted 2% price band. The price band for securities exiting the framework will be reinstated to pre-ESM levels, subject to no other surveillance measures being applicable.

Compliance Requirements

  • Market participants must ensure 100% margin requirement is met for all open positions in ESM Stage-I securities as on February 09, 2026
  • 100% margin must be maintained for all new positions created from February 10, 2026 in ESM Stage-I securities
  • Trading in newly included ESM securities must be conducted in Trade-for-Trade segment (BE/ST series) from February 10, 2026
  • Stage-II securities must be traded under Periodic Call Auction with 2% price band restriction from February 09, 2026
  • Members must refer to consolidated list in Annexure III for complete overview of securities under ESM framework
  • For queries, market participants should contact surveillance@nse.co.in

Important Dates

  • February 06, 2026: Circular issuance date
  • February 09, 2026: 100% margin applicable on all open positions; Stage-II securities begin trading under Periodic Call Auction with 2% price band
  • February 10, 2026: 100% margin applicable on new positions; Securities shift from EQ/SM to BE/ST series

Impact Assessment

The ESM framework imposes significant trading restrictions on affected securities. The 100% margin requirement substantially increases capital requirements for trading these stocks, which will likely reduce liquidity and trading volumes. The shift to Trade-for-Trade segment eliminates intraday trading opportunities, requiring full delivery of shares. For Stage-II securities, the 2% price band under Periodic Call Auction severely restricts price movement and trading flexibility. These measures are designed to curb excessive speculation and volatility but will materially impact market participants holding positions in these seven securities. Investors should review their portfolios and ensure adequate margin coverage to avoid forced liquidation of positions.

Impact Justification

Significant trading restrictions with 100% margin requirement, shift to Trade-for-Trade segment, and 2% price band under Periodic Call Auction for affected securities