Description

NSE announces new securities under Enhanced Surveillance Measure (ESM) with 100% margin requirements effective February 24, 2026, including additions to Stage I, movements between stages, and segment shifts from Rolling Settlement to Trade-for-Trade.

Summary

NSE has issued a circular under the Enhanced Surveillance Measure (ESM) framework identifying securities for inclusion in ESM Stage I, movement from Stage I to Stage II, and movement from Stage II back to Stage I, effective February 23–24, 2026. Affected securities will attract a minimum 100% margin and be shifted from Rolling Settlement to Trade-for-Trade segments.

Key Points

  • 4 new securities shortlisted for ESM Stage I effective February 23, 2026: CKKRETAIL, DRSDILIP, JITFINFRA, MANAV
  • 3 securities promoted from ESM Stage I to Stage II effective February 23, 2026: KODYTECH, NORBTEAEXP, SOMATEX
  • 1 security (VIPULLTD) moving from ESM Stage II back to Stage I effective February 23, 2026
  • All newly included/stage-shifted securities will attract a minimum 100% margin on open positions as of February 23, 2026, and new positions from February 24, 2026
  • Securities shifted to Stage II will trade under Trade-for-Trade with a 2% price band under Periodic Call Auction w.e.f. February 23, 2026
  • ESM is applied in conjunction with all other prevailing surveillance measures
  • Shortlisting under ESM is purely for market surveillance purposes and should not be construed as adverse action against the company

Regulatory Changes

Securities qualifying under ESM will be shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) effective February 24, 2026. Stage II securities will additionally be subject to a 2% price band under Periodic Call Auction. Upon exit from the framework, the price band will be reinstated to the band applicable before shortlisting, unless the scrip remains under another surveillance measure.

Compliance Requirements

  • NSE members must ensure minimum 100% margin is collected on all open positions in affected securities as on February 23, 2026
  • Members must collect minimum 100% margin on new positions in affected securities created from February 24, 2026
  • Members should note segment changes (EQ/SM to BE/ST) and update trading systems accordingly
  • Members are advised to review the consolidated list in Annexure III for all securities currently under the ESM framework

Important Dates

  • February 23, 2026: ESM Stage I inclusions and stage movements take effect; Stage II Trade-for-Trade with 2% price band under Periodic Call Auction begins; margin applicable on open positions as of this date
  • February 24, 2026: Segment shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) takes effect; 100% margin applicable on new positions created from this date

Impact Assessment

The circular directly restricts trading in 8 securities across BSE/NSE segments. The mandatory 100% margin requirement significantly increases the cost of holding or creating positions in these stocks, reducing leverage and potentially compressing liquidity. The shift from Rolling Settlement to Trade-for-Trade eliminates netting benefits and requires full delivery for each trade, further discouraging speculative activity. Stage II securities face additional constraints via the 2% price band under Periodic Call Auction, severely limiting intraday price discovery. Retail and institutional participants holding positions in CKKRETAIL, DRSDILIP, JITFINFRA, MANAV, KODYTECH, NORBTEAEXP, SOMATEX, and VIPULLTD should reassess their exposure ahead of February 23, 2026.

Impact Justification

Directly impacts trading in multiple securities with 100% margin requirements and forced segment shifts from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST), significantly restricting liquidity and trading flexibility for affected stocks.