Description

NSE announces inclusion of Gem Aromatics Limited under ESM Stage I effective March 11-12, 2026, with 100% margin requirement and shift to Trade-for-Trade segment.

Summary

NSE has issued a circular (Ref: NSE/SURV/73222, Circular Ref. No: 181/2026) updating the list of securities under the Enhanced Surveillance Measure (ESM) framework. Gem Aromatics Limited (GEMAROMA) has been newly included under ESM Stage I effective March 11, 2026, with trading restrictions applying from March 12, 2026. No securities are being excluded or moved between stages in this update.

Key Points

  • Gem Aromatics Limited (GEMAROMA, ISIN: INE06XZ01023) is newly included under ESM Stage I w.e.f. March 11, 2026
  • A minimum 100% margin will be applicable on all open positions as on March 11, 2026, and new positions created from March 12, 2026
  • GEMAROMA will be shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) w.e.f. March 12, 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
  • Securities shifting to Stage II are subject to Trade for Trade with a 2% price band under Periodic Call Auction w.e.f. March 11, 2026
  • The ESM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ESM is purely for market surveillance purposes and should not be construed as adverse action against the company

Regulatory Changes

This circular references and builds upon previous ESM 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 consolidated ESM list now includes securities such as ASCOM, CBAZAAR, DIVINEHIRA, GCSL, and newly added GEMAROMA, among others.

Compliance Requirements

  • Members must maintain a minimum 100% margin on all open positions in GEMAROMA as on March 11, 2026
  • Members must ensure 100% margin on new positions in GEMAROMA created from March 12, 2026
  • Trading in GEMAROMA must be conducted under the Trade-for-Trade (BE/ST) series from March 12, 2026
  • Members should inform their clients about the changed trading conditions for affected securities
  • For queries, members may write to surveillance@nse.co.in

Important Dates

  • March 10, 2026: Circular issued
  • March 11, 2026: ESM Stage I inclusion effective for GEMAROMA; 100% margin applicable on open positions; Stage II securities subject to 2% price band under Periodic Call Auction
  • March 12, 2026: GEMAROMA shifts from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) segment; 100% margin on new positions

Impact Assessment

The inclusion of Gem Aromatics Limited (GEMAROMA) under ESM Stage I significantly restricts trading in the stock. The mandatory 100% margin requirement will substantially increase the cost of holding positions, likely reducing speculative activity. The shift to Trade-for-Trade settlement eliminates netting of positions, meaning each transaction must result in delivery, reducing intraday trading flexibility. These measures are designed to protect investors by reducing excessive volatility in the identified security. Market participants holding existing positions in GEMAROMA must ensure adequate margins are in place by March 11, 2026, or risk forced liquidation.

Impact Justification

Directly impacts trading conditions for listed securities by imposing 100% margin requirements and shifting them to Trade-for-Trade segment, significantly affecting liquidity and trading activity for affected stocks.