Description
NSE adds RTL and SHANKARA to ESM Stage I effective March 20, 2026, with mandatory 100% margin and shift to Trade-for-Trade segment from March 23, 2026. No exclusions this cycle.
Summary
NSE has updated the Enhanced Surveillance Measure (ESM) framework effective March 20–23, 2026. Two securities — Rama Telecom Limited (RTL) and Shankara Building Products Limited (SHANKARA) — have been newly included under ESM Stage I. Both will be shifted from the Rolling Settlement segment (EQ/SM) to the Trade-for-Trade segment (BE/ST) effective March 23, 2026, and will attract a minimum 100% margin on all open and new positions. No securities are being moved between stages or excluded from the framework in this update.
Key Points
- RTL (Rama Telecom Limited, ISIN: INE14W901010) added to ESM Stage I w.e.f. March 20, 2026
- SHANKARA (Shankara Building Products Limited, ISIN: INE274V01019) added to ESM Stage I w.e.f. March 20, 2026
- Both securities will attract a minimum 100% margin on all open positions as on March 20, 2026, and on new positions from March 23, 2026
- Both securities shifted from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series) w.e.f. March 23, 2026
- Securities moving to Stage II would be placed under Trade-for-Trade with a 2% price band under Periodic Call Auction — no Stage II additions this cycle
- No securities are being excluded from the ESM framework this cycle
- ESM framework operates in conjunction with all other prevailing surveillance measures
- Shortlisting under ESM is purely for market surveillance purposes and does not constitute adverse action against the company
Regulatory Changes
This circular is issued under the ESM framework established by Exchange Circulars NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315 (June 2023 through July 2025). The current update applies the framework criteria to include two new securities at Stage I level.
Compliance Requirements
- NSE Members must ensure clients holding or intending to trade in RTL and SHANKARA are aware of the 100% margin requirement effective March 23, 2026
- Members must account for the segment shift from EQ/SM to BE/ST for both securities — settlement obligations change accordingly
- Positions open as of March 20, 2026 in these securities will require 100% margin coverage
- Members should update their risk management and margin collection systems for these securities before market open on March 23, 2026
- Queries can be directed to surveillance@nse.co.in
Important Dates
| Date | Event |
|---|---|
| March 19, 2026 | Circular issued |
| March 20, 2026 | ESM Stage I inclusion effective; 100% margin applicable on open positions as of this date |
| March 23, 2026 | Segment shift (EQ/SM → BE/ST) effective; 100% margin on new positions |
Impact Assessment
RTL (Rama Telecom Limited) and SHANKARA (Shankara Building Products Limited) will face significantly reduced liquidity following the Trade-for-Trade shift, as netting of positions is not permitted in the BE/ST segment. The 100% margin requirement substantially increases the cost of holding or taking new positions, likely reducing retail and leveraged participation.
The consolidated ESM list now includes a broader set of securities (Annexure III lists multiple companies including ABMINTLLTD and ASCOM at Stage II), indicating ongoing surveillance activity across small/mid-cap segments. Market participants with existing exposure to RTL or SHANKARA should review their risk positions ahead of March 20, 2026.
Impact Justification
Directly affects trading conditions for two securities — mandatory 100% margin and segment shift to Trade-for-Trade with restricted price bands impacts liquidity and trading strategies for holders and market participants in RTL and SHANKARA.