Description

NSE implements Enhanced Surveillance Measure for select securities with 100% margin requirement and trade-for-trade settlement effective February 11, 2026.

Summary

NSE has issued updates to its Enhanced Surveillance Measure (ESM) framework effective February 10-11, 2026. Three securities are being included in ESM Stage-I with 100% minimum margin requirement and shift to trade-for-trade segment. One security (SALSTEEL) is being moved from Stage-I to Stage-II with stricter 2% price band under Periodic Call Auction. No securities are being excluded from the ESM framework.

Key Points

  • Three securities added to ESM Stage-I: Medistep Healthcare Limited (MEDISTEP), Niraj Ispat Industries Limited (NIRAJISPAT), and Vijaypd Ceutical Limited (VIJAYPD)
  • 100% minimum margin applicable on all open positions as on February 10, 2026 and new positions from February 11, 2026
  • Securities shifting from Rolling Settlement segment (EQ/SM series) to Trade-for-Trade segment (BE/ST series) effective February 11, 2026
  • S.A.L. Steel Limited (SALSTEEL) moving from Stage-I to Stage-II with 2% price band under Periodic Call Auction
  • No securities moving from Stage-II to Stage-I
  • No securities being excluded from ESM framework
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

The circular updates the Enhanced Surveillance Measure framework based on previous circulars NSE/SURV/56948 (June 02, 2023), NSE/SURV/57609 (July 18, 2023), NSE/SURV/63361 (August 09, 2024), NSE/SURV/64066 (September 20, 2024), NSE/SURV/64400 (October 04, 2024), and NSE/SURV/69315 (July 25, 2025).

Securities under ESM are subject to:

  • Mandatory 100% margin requirement
  • Trade-for-Trade settlement (no intraday squaring off)
  • Stage-II securities additionally subject to 2% price band under Periodic Call Auction
  • Shift from normal rolling settlement to restricted trading segments

Compliance Requirements

  • Market participants must ensure 100% upfront margin for the listed securities effective February 11, 2026
  • All open positions in affected securities as on February 10, 2026 must meet the enhanced margin requirement
  • Trading members must comply with trade-for-trade settlement for MEDISTEP, NIRAJISPAT, and VIJAYPD
  • SALSTEEL will trade under Periodic Call Auction with 2% price band restriction
  • Members should refer to Annexure III for consolidated list of all securities under ESM framework

Important Dates

  • February 09, 2026: Circular issuance date
  • February 10, 2026: 100% margin applicable on existing open positions; SALSTEEL moves to Stage-II with 2% price band under Periodic Call Auction
  • February 11, 2026: New securities shift to Trade-for-Trade segment (BE/ST series); 100% margin applicable on new positions

Impact Assessment

High impact on affected securities: The inclusion of securities in ESM framework significantly impacts trading liquidity and capital requirements. The 100% margin requirement substantially increases capital costs for traders and investors holding positions in these securities. The shift to trade-for-trade settlement eliminates intraday trading opportunities, further reducing liquidity.

Stage-II implications: SALSTEEL’s movement to Stage-II represents escalated surveillance with the additional constraint of 2% price band under Periodic Call Auction, severely restricting price volatility and trading flexibility.

Investor considerations: The exchange clarifies that ESM inclusion is purely a market surveillance measure and should not be construed as adverse action against the companies. However, investors should exercise heightened caution and conduct thorough due diligence before trading in these securities.

Capital allocation: Market participants with existing positions must arrange for additional capital to meet the 100% margin requirement by February 10, 2026, or face potential position squaring-off.

Impact Justification

High importance due to mandatory 100% margin requirement and shift to trade-for-trade segment affecting trading liquidity and capital requirements for impacted securities