Description
NSE places Sadbhav Engineering Limited and Silkflex Polymers (India) Limited under ESM Stage I with 100% margin requirement effective March 02, 2026, and shifts them from Rolling Settlement to Trade-for-Trade segment.
Summary
NSE’s Surveillance department (Circular Ref. No: 150/2026, Download Ref No: NSE/SURV/73012) has announced the applicability of the Enhanced Surveillance Measure (ESM) framework. Two securities — Sadbhav Engineering Limited (SADBHAV) and Silkflex Polymers (India) Limited (SILKFLEX) — have been newly included under ESM Stage I effective February 27, 2026. These securities will be shifted from the Rolling Settlement segment (Series: EQ/SM) to the Trade-for-Trade segment (Series: BE/ST) effective March 02, 2026, with a mandatory minimum 100% margin requirement.
Key Points
- New ESM Stage I Inclusions (w.e.f. February 27, 2026):
- SADBHAV — Sadbhav Engineering Limited (ISIN: INE226H01026)
- SILKFLEX — Silkflex Polymers (India) Limited (ISIN: INE0STN01015)
- Both securities shift from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) w.e.f. March 02, 2026
- Minimum 100% margin applicable on all open positions as on February 27, 2026, and all new positions from March 02, 2026
- No securities are moving from Stage I to Stage II or Stage II to Stage I
- No securities are being excluded from the ESM framework in this update
- Consolidated ESM list currently includes:
- CBAZAAR — Net Avenue Technologies Limited (INE518X01015) — Stage II
- CURAA — Cura Technologies Limited (INE117B01020) — Stage II
- ESM Stage II securities are subject to Trade-for-Trade with a 2% price band under Periodic Call Auction w.e.f. February 27, 2026
- ESM operates in conjunction with all other prevailing surveillance measures
Regulatory Changes
This circular is issued in reference to prior Exchange 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). The ESM framework is an ongoing surveillance mechanism; this circular constitutes a periodic update adding two new securities to Stage I.
Compliance Requirements
- NSE Members must ensure a minimum 100% margin is collected on all open positions in SADBHAV and SILKFLEX as on February 27, 2026, and on all new positions created from March 02, 2026
- Members must note the segment migration of SADBHAV and SILKFLEX from EQ/SM to BE/ST effective March 02, 2026, and update their trading systems accordingly
- Market participants holding or trading in ESM Stage II securities (CBAZAAR, CURAA) must comply with the 2% price band under Periodic Call Auction
- NSE has clarified that ESM inclusion is purely a market surveillance action and should not be construed as an adverse action against the concerned company/entity
- For queries, members may write to surveillance@nse.co.in
Important Dates
| Date | Event |
|---|---|
| February 27, 2026 | SADBHAV and SILKFLEX placed under ESM Stage I; 100% margin applies to open positions; Stage II Periodic Call Auction 2% price band effective |
| March 02, 2026 | SADBHAV and SILKFLEX shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST); 100% margin applies to all new positions |
Impact Assessment
High impact on the directly named securities:
- SADBHAV (Sadbhav Engineering Limited) and SILKFLEX (Silkflex Polymers (India) Limited) face significantly reduced liquidity due to the shift to Trade-for-Trade segment, eliminating netting of positions and requiring 100% upfront margin. This typically deters speculative activity and can cause short-term price volatility.
- CBAZAAR and CURAA remain in Stage II with stricter 2% price band under Periodic Call Auction, severely limiting price discovery and intraday trading.
- Institutional and retail investors holding these securities should be aware of the increased margin burden and restricted settlement mechanism.
- The ESM framework aims to protect investors from excessive speculation in stocks exhibiting abnormal market behavior, but inclusion often results in temporary selling pressure due to increased compliance costs for brokers and traders.
Impact Justification
Direct trading restrictions imposed on specific securities including mandatory 100% margin, segment shift from Rolling Settlement to Trade-for-Trade, and price band restrictions, significantly impacting tradability and liquidity for affected stocks.