Description
NSE includes 3 securities under ESM Stage I and moves 2 securities from Stage II to Stage I effective March 23-24, 2026, with mandatory 100% margin and shift to Trade-for-Trade segment.
Summary
NSE has issued a circular under the Enhanced Surveillance Measure (ESM) framework adding 3 securities to Stage I, moving 2 securities from Stage II back to Stage I, and excluding certain securities from the framework, all effective March 23-24, 2026. Securities under ESM will attract a minimum 100% margin and be shifted from the Rolling Settlement segment to the Trade-for-Trade segment.
Key Points
- 3 securities newly shortlisted under ESM Stage I effective March 23, 2026: PARTH, TIRUPATIFL, UMESLTD
- PARTH and TIRUPATIFL will move from EQ/SM to BE/ST series w.e.f. March 24, 2026
- 2 securities (DIVINEHIRA, TANKUP) moving from ESM Stage II back to Stage I w.e.f. March 23, 2026
- Minimum 100% margin applicable on all open positions as on March 23, 2026, and new positions from March 24, 2026
- Securities shifting to Stage II placed under Trade for Trade with 2% price band under Periodic Call Auction w.e.f. March 23, 2026
- ESM framework operates in conjunction with all other prevailing surveillance measures
- Shortlisting under ESM is purely for market surveillance and not an adverse action against the company
Regulatory Changes
- Securities shortlisted under ESM shall be shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) w.e.f. March 24, 2026
- Stage II securities are subject to Trade for Trade with a 2% price band under Periodic Call Auction
- Upon exit from the ESM framework, the price band will revert to the pre-ESM applicable band, unless the scrip is part of another surveillance measure
Compliance Requirements
- NSE members must note the inclusion and movement of securities under the ESM framework
- Members must apply a minimum 100% margin on open positions in affected securities as on March 23, 2026
- All new positions in affected securities from March 24, 2026 must also carry a minimum 100% margin
- Members should monitor the consolidated list of securities under the ESM framework (Annexure III)
- For queries, members may contact surveillance@nse.co.in
Important Dates
- March 20, 2026: Circular issuance date
- March 23, 2026: Effective date for ESM Stage I inclusion and Stage I/II movements; Stage II securities subject to 2% price band under Periodic Call Auction
- March 24, 2026: Effective date for segment shift from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) for PARTH and TIRUPATIFL; 100% margin applicable on new positions
Impact Assessment
Newly added to ESM Stage I (w.e.f. March 23, 2026):
| Sr. No. | Symbol | Security Name | ISIN |
|---|---|---|---|
| 1 | PARTH | Parth Electricals & Engineering Limited | INE1H7V01011 |
| 2 | TIRUPATIFL | Tirupati Forge Limited | INE319Y01024 |
| 3 | UMESLTD | Usha Martin Education & Solutions Limited | INE240C01028 |
Moving from ESM Stage II to Stage I (w.e.f. March 23, 2026):
| Sr. No. | Symbol | Security Name | ISIN |
|---|---|---|---|
| 1 | DIVINEHIRA | Divine Hira Jewellers Limited | INE0NA501011 |
| 2 | TANKUP | Tankup Engineers Limited | INE0Z7N01017 |
The 100% margin requirement significantly increases the cost of holding positions in these securities, effectively reducing leverage and liquidity. The shift to Trade-for-Trade eliminates netting benefits and requires delivery-based settlement for every trade, further constraining trading activity. The 2% price band under Periodic Call Auction for Stage II securities severely limits intraday price movement, reducing speculative activity. Collectively, these measures are intended to protect investors from potential price manipulation or abnormal volatility in these scrips.
Impact Justification
Multiple securities face mandatory 100% margin requirements and segment shifts to Trade-for-Trade, directly restricting trading conditions for affected stocks.