Description

NSE includes 4 securities under ESM Stage I and moves 2 securities from Stage I to Stage II effective March 05-06, 2026, with mandatory 100% margin requirements and shift to Trade-for-Trade settlement.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework effective March 05-06, 2026. Four securities are newly included under ESM Stage I, two securities are moved from Stage I to Stage II (with stricter 2% price band under Periodic Call Auction), and no securities are being excluded from the framework. All newly included and moved securities will shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series) effective March 06, 2026.

Key Points

  • 4 securities newly included in ESM Stage I effective March 05, 2026: AFIL (Akme Fintrade), CAPTRUST (Capital Trust), ITALIANE (Italian Edibles), MANGALAM (Mangalam Drugs And Organics)
  • 2 securities moving from ESM Stage I to Stage II effective March 05, 2026: ASCOM (Ascom Leasing & Investments), VIPULLTD (Vipul Limited)
  • No securities excluded from the ESM framework
  • Minimum 100% margin applicable w.e.f. March 06, 2026 on all open positions as on March 05, 2026 and new positions created thereafter
  • Stage II securities subject to Trade-for-Trade with 2% price band under Periodic Call Auction w.e.f. March 05, 2026
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

This circular references and operates under the ESM framework established via earlier 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 current circular applies existing ESM criteria to newly qualifying securities.

Compliance Requirements

  • Members/Brokers: Must collect minimum 100% margin on all open and new positions in ESM-listed securities from March 06, 2026
  • Market Participants: Must note the segment shift from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) for newly included securities effective March 06, 2026
  • Stage II securities: Must be traded under Periodic Call Auction with a 2% price band effective March 05, 2026
  • Queries can be directed to surveillance@nse.co.in

Important Dates

  • March 04, 2026: Circular issued
  • March 05, 2026: ESM Stage I and Stage II inclusions/movements effective; Stage II Periodic Call Auction with 2% price band begins
  • March 06, 2026: Segment shift from EQ/SM to BE/ST effective; 100% margin requirement applies on new positions and open positions as of March 05, 2026

Impact Assessment

High impact for traders and investors holding or planning to trade in the 6 affected securities. The mandatory 100% margin requirement doubles capital requirements compared to normal margin, significantly reducing leverage and increasing cost of trading. The shift to Trade-for-Trade segment eliminates netting benefits and requires actual delivery/receipt of securities, reducing speculative trading. Stage II securities face additional restrictions with a tight 2% price band under Periodic Call Auction, severely limiting price discovery and liquidity. These measures are purely surveillance-driven and should not be construed as adverse regulatory action against the companies themselves.

Impact Justification

Directly affects trading conditions for 6 securities with mandatory 100% margin requirements and forced segment shift from rolling to trade-for-trade settlement, significantly impacting liquidity and trading costs.