Description

NSE announces inclusion and stage changes under the Enhanced Surveillance Measure (ESM) framework effective March 12-13, 2026, with ABMINTLLTD and S&SPOWER moving to Stage II.

Summary

NSE’s Surveillance department has issued Circular 183/2026 announcing updates to the Enhanced Surveillance Measure (ESM) framework. Two securities — ABMINTLLTD (ABM International Limited) and S&SPOWER (S&S Power Switchgears Limited) — are being moved from ESM Stage I to Stage II effective March 12, 2026. No new securities are being added to Stage I, and no securities are being excluded from the framework in this cycle.

Key Points

  • No new securities are being added to ESM Stage I in this update (Annexure I shows Nil for new inclusions).
  • Two securities are moving from ESM Stage I to Stage II effective March 12, 2026: ABMINTLLTD (ABM International Limited, ISIN: INE251C01025) and S&SPOWER (S&S Power Switchgears Limited, ISIN: INE902B01017).
  • No securities are being excluded from the ESM framework in this cycle (Annexure II shows Nil).
  • All securities under ESM will attract a minimum 100% margin on all open positions as of March 12, 2026, and on new positions from March 13, 2026.
  • Securities qualifying under ESM will be shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) effective March 13, 2026.
  • Securities moving to Stage II will be placed under Trade for Trade with a 2% price band under Periodic Call Auction effective March 12, 2026.
  • The consolidated ESM list includes at least: ABMINTLLTD (Stage II), ASCOM / Ascom Leasing & Investments Limited (Stage II), CBAZAAR / Net Avenue Technologies Limited (Stage II), and others.

Regulatory Changes

This circular references and builds upon earlier ESM 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 Stage II escalation applies more stringent trading restrictions compared to Stage I, including a tighter 2% price band under Periodic Call Auction.

Compliance Requirements

  • NSE Members must ensure clients are aware of the 100% margin requirement on ESM-listed securities for open positions as of March 12, 2026, and new positions from March 13, 2026.
  • Members must account for the segment shift from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) for all affected securities effective March 13, 2026.
  • Stage II securities will trade under Periodic Call Auction with a 2% price band starting March 12, 2026 — members should update systems and notify clients accordingly.
  • Members may direct queries to surveillance@nse.co.in.

Important Dates

  • March 11, 2026: Circular issued.
  • March 12, 2026: Stage changes take effect; Stage II securities subject to 2% price band under Periodic Call Auction; 100% margin applies to existing open positions.
  • March 13, 2026: ESM securities shifted to Trade-for-Trade segment (BE/ST); 100% margin applies to all new positions.

Impact Assessment

The escalation of ABMINTLLTD and S&SPOWER to ESM Stage II significantly restricts trading in these securities. The combination of 100% margin requirements, Trade-for-Trade settlement, and a 2% intraday price band under Periodic Call Auction sharply limits liquidity and leverage. Existing holders may face margin calls, and traders will find it difficult to take large positions. NSE emphasizes that ESM classification is a surveillance measure and should not be interpreted as regulatory action against the companies themselves.

Impact Justification

Directly affects trading conditions for specific securities — mandatory 100% margin, shift to Trade-for-Trade segment, and 2% price band under Periodic Call Auction impose significant restrictions on market participants holding or trading these stocks.