Description

NSE announces inclusion of SANGINITA and WANBURY into ESM Stage I, and HOACFOODS moving to Stage II, effective February 25-26, 2026, with 100% margin requirements and shift to Trade-for-Trade settlement.

Summary

NSE’s Surveillance department (Circular Ref. No. 146/2026) has updated the Enhanced Surveillance Measure (ESM) framework. Two securities — SANGINITA (Sanginita Chemicals Limited) and WANBURY (Wanbury Limited) — are newly included under ESM Stage I. HOACFOODS (Hoac Foods India Limited) is being escalated from Stage I to Stage II. No securities are being removed from the ESM framework in this update.

Key Points

  • New ESM Stage I inclusions (w.e.f. February 25, 2026): SANGINITA (INE753W01010), WANBURY (INE107F01022)
  • ESM Stage I → Stage II upgrade (w.e.f. February 25, 2026): HOACFOODS (Hoac Foods India Limited, INE0S6S01017)
  • ESM Stage II → Stage I downgrade: None (Nil)
  • Exclusions from ESM framework: None (Nil)
  • All newly included/upgraded securities will attract a minimum 100% margin on open positions as of February 25, 2026, and on new positions from February 26, 2026
  • Securities shift from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) w.e.f. February 26, 2026
  • Stage II securities will trade under Trade-for-Trade with a 2% price band under Periodic Call Auction w.e.f. February 25, 2026
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

This circular references and builds upon prior ESM circulars: NSE/SURV/56948 (June 2, 2023), NSE/SURV/57609 (July 18, 2023), NSE/SURV/63361 (August 9, 2024), NSE/SURV/64066 (September 20, 2024), NSE/SURV/64400 (October 4, 2024), and NSE/SURV/69315 (July 25, 2025). The updated consolidated ESM list includes securities such as CBAZAAR (Net Avenue Technologies Limited, INE518X01015, Stage II) and CURAA (Cura Technologies, Stage information partially available).

Compliance Requirements

  • Trading Members: Must ensure 100% margin collection on all open and new positions in ESM-listed securities from the effective dates
  • Members must note the reclassification of affected securities from EQ/SM series to BE/ST series and update trading systems accordingly
  • Stage II securities must be traded under Periodic Call Auction with a 2% price band
  • Members are advised that ESM shortlisting is a market surveillance action and should not be treated as an adverse regulatory action against the listed company

Important Dates

  • February 24, 2026: Circular issued
  • February 25, 2026: ESM Stage I/II reclassifications effective; Stage II Periodic Call Auction (2% price band) begins; 100% margin applicable on existing open positions
  • February 26, 2026: Shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) effective; 100% margin on all new positions

Impact Assessment

Traders and investors holding positions in SANGINITA, WANBURY, or HOACFOODS face significant trading restrictions. The mandatory 100% margin requirement effectively doubles capital requirements for leveraged positions, likely reducing liquidity in these counters. The move to Trade-for-Trade eliminates netting benefits and requires full delivery on every trade, further constraining trading activity. HOACFOODS faces the most restrictive conditions as a Stage II security, being subject to a 2% price band under Periodic Call Auction — sharply limiting daily price movement and trading flexibility. These measures are consistent with NSE’s ongoing surveillance framework to protect market integrity in securities exhibiting abnormal price or volume behaviour.

Impact Justification

Directly impacts trading conditions for specific securities with mandatory 100% margins and compulsory shift to Trade-for-Trade settlement; routine periodic ESM update but high operational impact on affected stock traders.