Description

NSE circular announcing updates to the Enhanced Surveillance Measure (ESM) framework, including securities moving to Stage II and the consolidated list of securities under ESM effective March 17-18, 2026.

Summary

NSE has issued an update to the Enhanced Surveillance Measure (ESM) framework (Circular Ref. No: 194/2026). SANGINITA (Sanginita Chemicals Limited) will move from ESM Stage I to Stage II effective March 17, 2026. No new securities are being added to Stage I and none are being excluded from the framework. A 100% margin requirement will apply on all open and new positions from March 18, 2026 for securities under the framework.

Key Points

  • SANGINITA (Sanginita Chemicals Limited, INE753W01010) moves from ESM Stage I to Stage II w.e.f. March 17, 2026
  • No new securities added to ESM Stage I (Annexure I: Nil)
  • No securities excluded from ESM framework (Annexure II: Nil)
  • Minimum 100% margin applicable on all open positions as on March 17, 2026 and new positions from March 18, 2026
  • Securities under ESM shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series) w.e.f. March 18, 2026
  • Stage II securities will be under Trade for Trade with a 2% price band under Periodic Call Auction w.e.f. March 17, 2026
  • ESM classification is purely a surveillance action and should not be construed as adverse action against the company

Regulatory Changes

The ESM framework update is issued in continuation of prior circulars: NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315 dated June 2, 2023 through July 25, 2025. The current update shifts SANGINITA to Stage II, tightening its trading restrictions to Trade-for-Trade with a 2% price band under Periodic Call Auction.

Compliance Requirements

  • NSE members must apply a minimum 100% margin on all open positions in ESM-listed securities as on March 17, 2026
  • Members must apply 100% margin on all new positions in these securities from March 18, 2026
  • Trading in affected securities must comply with the Trade-for-Trade segment rules (BE/ST series) from March 18, 2026
  • Stage II securities (including SANGINITA) must follow the 2% price band restriction under Periodic Call Auction from March 17, 2026
  • ESM framework applies in conjunction with all other prevailing surveillance measures

Important Dates

  • March 16, 2026: Circular issued
  • March 17, 2026: SANGINITA moves to ESM Stage II; 2% price band under Periodic Call Auction takes effect for Stage II securities; reference date for open positions subject to 100% margin
  • March 18, 2026: Shift from Rolling Settlement to Trade-for-Trade segment (BE/ST series); 100% margin on new positions takes effect

Impact Assessment

Trading in SANGINITA (Sanginita Chemicals Limited) will be significantly restricted starting March 17, 2026 as it transitions to ESM Stage II. The 2% price band under Periodic Call Auction severely limits daily price movement, while the Trade-for-Trade settlement eliminates netting benefits for traders. The 100% margin requirement substantially increases the capital cost of holding positions. The consolidated ESM list includes at least five securities (ABMINTLLTD, ASCOM, DIVINEHIRA, GSTL, and SANGINITA), all subject to these restrictive trading conditions. Market participants holding positions in any of these securities should review their exposure and margin availability ahead of the effective dates.

Impact Justification

Directly affects trading conditions for multiple securities by imposing 100% margin requirements and shifting them to Trade-for-Trade settlement, significantly impacting liquidity and trading strategy for affected stocks.