Description

NSE announces inclusion of Vardhman Polytex Limited under ESM Stage I, movement of two securities from Stage II to Stage I, and exclusion of Arham Technologies from the ESM framework, effective March 02-04, 2026.

Summary

NSE’s Surveillance Department (Circular Ref. No. 153/2026, Download Ref No. NSE/SURV/73043) announces updates to the Enhanced Surveillance Measure (ESM) framework. One security is newly included under ESM Stage I, two securities move from Stage II back to Stage I, and at least one security is excluded from the framework entirely, all effective March 02–04, 2026.

Key Points

  • Vardhman Polytex Limited (VARDMNPOLY, INE835A01029) is newly shortlisted under ESM Stage I w.e.f. March 02, 2026; will shift from EQ/SM to BE/ST (Trade-for-Trade) w.e.f. March 04, 2026.
  • Dhariwalcorp Limited (DHARIWAL, INE0YRN01025) and Madhav Copper Limited (MCL, INE813V01022) move from ESM Stage II to Stage I w.e.f. March 02, 2026.
  • Arham Technologies Limited (ARHAM, INE0L2Y01011) is excluded from the ESM framework w.e.f. March 02, 2026.
  • A minimum 100% margin is applicable on all open positions as on March 02, 2026, and new positions from March 04, 2026, for securities under ESM.
  • Securities shifting to Stage II are subject to Trade-for-Trade with a 2% price band under Periodic Call Auction w.e.f. March 02, 2026.
  • Upon exit from the framework, a scrip’s price band reverts to its pre-ESM band, unless it remains under another surveillance measure.
  • ESM operates in conjunction with all other prevailing surveillance measures imposed by exchanges.

Regulatory Changes

This circular updates the ESM framework originally established under circulars NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315 (dated June 2023 through July 2025). The current update revises the list of securities under ESM Stage I and Stage II, and reflects exclusions from the framework.

Compliance Requirements

  • NSE members must ensure 100% margin collection on all open positions in ESM-listed securities as on March 02, 2026, and on new positions from March 04, 2026.
  • Trading in newly included or reclassified securities must be conducted in the Trade-for-Trade segment (Series: BE/ST) from March 04, 2026.
  • Members should update their systems to reflect the revised ESM list (Annexure III consolidated list) and enforce applicable price bands.
  • For queries, members may contact surveillance@nse.co.in.

Important Dates

  • March 02, 2026: ESM inclusions, stage movements, and exclusions take effect; Stage II price band (2% under Periodic Call Auction) applicable; 100% margin applicable on open positions.
  • March 04, 2026: Affected securities shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST); 100% margin applicable on new positions.

Impact Assessment

The designation of securities under ESM significantly restricts trading by mandating 100% margins and shifting scrips to Trade-for-Trade settlement, reducing liquidity and limiting speculative activity. Retail and institutional investors holding or trading VARDMNPOLY, DHARIWAL, and MCL will face higher capital requirements and restricted settlement flexibility. The exit of ARHAM from the framework restores normal trading conditions for that stock. The framework is presented as a surveillance tool only and should not be interpreted as a regulatory penalty against the listed companies.

Impact Justification

Imposes 100% margin requirements and forces shift from rolling settlement to trade-for-trade segment for affected securities, directly restricting trading conditions for multiple listed companies.