Description

NSE announces additions, stage movements, and exclusions under the Enhanced Surveillance Measure (ESM) framework effective March 30, 2026. Two securities are added to ESM Stage-I, five move from Stage-II to Stage-I, and nine are excluded from the ESM framework.

Summary

NSE has issued this circular under the Enhanced Surveillance Measure (ESM) framework, announcing changes effective March 30, 2026. Two new securities are placed under ESM Stage-I, five securities are downgraded from ESM Stage-II back to Stage-I, and nine securities are excluded from the ESM framework entirely. Additionally, securities newly added to ESM Stage-I will be migrated from EQ/SM segment to BE/ST segment effective April 1, 2026, while excluded securities will move from BE/ST back to EQ/SM effective March 30, 2026.

Key Points

  • 2 securities newly added to ESM Stage-I effective March 30, 2026: GRETEX (Gretex Industries Limited) and SURANI (Surani Steel Tubes Limited)
  • No securities are being moved from ESM Stage-I to Stage-II
  • 5 securities downgraded from ESM Stage-II to Stage-I effective March 30, 2026: HOACFOODS, KODYTECH, MOXSH, NORBTEAEXP, and SOMATEX
  • 9 securities excluded from ESM framework effective March 30, 2026: ARVEE, CBAZAAR, GCSL, MAANALU, MARINETRAN, MCON, SALSTEEL, SVPGLOB, and TCIFINANCE
  • Newly added Stage-I securities (GRETEX, SURANI) will migrate from EQ/SM to BE/ST segment on April 1, 2026
  • Excluded securities will migrate from BE/ST to EQ/SM segment on March 30, 2026
  • The consolidated ESM list contains 14 securities in Stage-II and multiple securities in Stage-I

Regulatory Changes

The ESM framework is a surveillance mechanism by NSE to enhance market integrity for securities exhibiting abnormal price/volume behaviour. Changes to ESM classification directly alter the trading segment and settlement mechanism:

  • EQ/SM to BE/ST: Securities moved into ESM are shifted to the Trade-for-Trade (BE/ST) segment, requiring full upfront margins and eliminating netting of positions.
  • BE/ST to EQ/SM: Securities removed from ESM are restored to normal trading in the rolling settlement segment.

Compliance Requirements

  • Brokers and trading members must update their systems to reflect segment changes for affected securities by the respective effective dates.
  • Investors holding GRETEX or SURANI should be aware of the shift to BE/ST segment from April 1, 2026, which may affect margin requirements and settlement obligations.
  • Investors holding excluded securities (ARVEE, CBAZAAR, GCSL, MAANALU, MARINETRAN, MCON, SALSTEEL, SVPGLOB, TCIFINANCE) will benefit from restoration to normal EQ/SM trading from March 30, 2026.
  • No action required for securities remaining within ESM (Stage-I or Stage-II) without a segment change.

Important Dates

  • March 30, 2026: ESM additions, stage movements, and exclusions take effect; excluded securities migrate from BE/ST to EQ/SM
  • April 1, 2026: Newly added ESM Stage-I securities (GRETEX, SURANI) migrate from EQ/SM to BE/ST segment

Impact Assessment

High impact on the directly affected securities and their investors:

  • GRETEX and SURANI: Placement under ESM Stage-I and subsequent shift to BE/ST will reduce liquidity and require trade-for-trade settlement, typically leading to price and volume impact.
  • HOACFOODS, KODYTECH, MOXSH, NORBTEAEXP, SOMATEX: Downgrade from Stage-II to Stage-I is a positive development, indicating improved compliance or surveillance metrics, though they remain under ESM restrictions.
  • 9 excluded securities: Restoration to EQ/SM from BE/ST is a significant positive — normal rolling settlement resumes, improving tradability and reducing margin burden for investors.
  • The consolidated ESM list continues to include 14 securities in the more restrictive Stage-II, signalling ongoing elevated surveillance for those counters.
  • Market participants should monitor SEBI/NSE guidelines for further ESM framework updates.

Impact Justification

Directly affects tradability and segment classification of multiple listed securities. ESM additions restrict trading to trade-for-trade settlement, impacting liquidity. Segment migrations (EQ/SM to BE/ST and vice versa) affect settlement obligations for investors holding or trading these stocks.