Description

NSE updates Enhanced Surveillance Measure (ESM) framework effective March 04-05, 2026, with UNIVPHOTO moving from Stage I to Stage II and no new inclusions or exclusions.

Summary

NSE has issued an update to the Enhanced Surveillance Measure (ESM) framework effective March 04-05, 2026. UNIVPHOTO (Universus Photo Imagings Limited) is being escalated from ESM Stage I to Stage II. No new securities are being added to Stage I, no securities are moving from Stage II back to Stage I, and no securities are being excluded from the ESM framework. Securities under ESM will attract a minimum 100% margin requirement and be shifted from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series).

Key Points

  • No new securities added to ESM Stage I (Nil)
  • UNIVPHOTO (Universus Photo Imagings Limited, ISIN: INE03V001013) escalated from ESM Stage I to Stage II w.e.f. March 04, 2026
  • No securities moving from Stage II to Stage I (Nil)
  • No securities excluded from ESM Framework (Nil)
  • All securities under ESM attract a minimum 100% margin on open positions as on March 04, 2026 and new positions from March 05, 2026
  • Affected securities shifted from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) w.e.f. March 05, 2026
  • Stage II securities placed under Trade-for-Trade with 2% price band under Periodic Call Auction w.e.f. March 04, 2026
  • ESM operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

This circular is issued under authority of previous ESM circulars: NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315 dated June 02, 2023 through July 25, 2025. The framework categorizes securities into Stage I and Stage II based on market surveillance criteria. Stage II imposes stricter conditions including a 2% price band under Periodic Call Auction. NSE clarifies that ESM shortlisting is purely for market surveillance purposes and should not be construed as an adverse action against the concerned company.

Compliance Requirements

  • NSE members must ensure minimum 100% margin is collected on all open positions in ESM-listed securities as on March 04, 2026
  • Members must apply the 100% margin requirement on all new positions created from March 05, 2026
  • Trading in UNIVPHOTO and other Stage II securities must be conducted under Trade-for-Trade (BE/ST series) with the applicable 2% price band under Periodic Call Auction
  • Members should refer to FAQs at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm for detailed guidelines
  • Queries may be directed to surveillance@nse.co.in

Important Dates

  • March 02, 2026: Circular issuance date
  • March 04, 2026: UNIVPHOTO moves from ESM Stage I to Stage II; 2% price band under Periodic Call Auction applicable for Stage II securities
  • March 04, 2026: Reference date for open positions subject to 100% margin
  • March 05, 2026: 100% margin requirement effective on open positions and new positions; securities shifted to Trade-for-Trade segment (BE/ST series)

Impact Assessment

The escalation of UNIVPHOTO to ESM Stage II significantly tightens trading conditions for this security. The 2% price band under Periodic Call Auction severely limits intraday price movement, while the Trade-for-Trade settlement eliminates netting benefits and requires full delivery/payment for each trade. The 100% margin requirement dramatically increases the cost of holding positions. The consolidated ESM list includes at least five securities (CBAZAAR, CURAA, DIVINEHIRA, EXIMROUTES, GCSL and others), all under Stage II, indicating continued elevated surveillance across these counters. Market participants and investors holding these securities should be aware of reduced liquidity, restricted price discovery, and significantly higher margin obligations.

Impact Justification

ESM changes impose 100% margin requirements and shift securities to Trade-for-Trade settlement, significantly restricting trading in affected stocks. UNIVPHOTO is escalated to Stage II with a 2% price band under Periodic Call Auction, directly impacting liquidity and trading conditions.