Description

NSE updates the Enhanced Surveillance Measure (ESM) framework effective April 06-07, 2026, with securities moving between stages and exclusions from the framework.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework effective April 06-07, 2026. Securities newly included under ESM will attract a minimum 100% margin requirement and will be shifted from the Rolling Settlement segment (EQ/SM series) to the Trade-for-Trade segment (BE/ST series). One security (TGL - Teerth Gopicon Limited) is moving from ESM Stage II back to Stage I, while five securities (including AMCL, ASLIND, AXITA, CPS) are being excluded from the ESM framework entirely.

Key Points

  • Securities included under ESM will attract a minimum 100% margin on all open positions as on April 06, 2026, and new positions from April 07, 2026
  • Qualifying securities shift from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST) w.e.f. April 07, 2026
  • Securities moving to Stage II will be under Trade for Trade with a 2% price band under Periodic Call Auction w.e.f. April 06, 2026
  • Annexure I: No new Stage I inclusions; TGL (Teerth Gopicon Limited, INE0K6601012) moves from Stage II back to Stage I
  • Annexure II: AMCL, ASLIND, AXITA, CPS and others are excluded from the ESM framework
  • ESM shortlisting is purely for market surveillance and should not be construed as adverse action against the company
  • Price band for securities moving out of ESM will revert to the band applicable before ESM shortlisting, subject to no other surveillance measure applying

Regulatory Changes

This circular references and builds upon previous ESM circulars: NSE/SURV/56948 (Jun 2, 2023), NSE/SURV/57609 (Jul 18, 2023), NSE/SURV/63361 (Aug 9, 2024), NSE/SURV/64066 (Sep 20, 2024), NSE/SURV/64400 (Oct 4, 2024), and NSE/SURV/69315 (Jul 25, 2025). The current update revises the list of securities under the ESM framework with stage changes and exclusions.

Compliance Requirements

  • NSE Members/Brokers: Must ensure 100% margin is collected on open and new positions in ESM-listed securities from the effective dates
  • Members: Must route trades in affected securities through the Trade-for-Trade segment (BE/ST series) from April 07, 2026
  • Members: For Stage II securities, must comply with the 2% price band under Periodic Call Auction from April 06, 2026
  • For queries, contact: surveillance@nse.co.in

Important Dates

  • April 02, 2026: Circular issued
  • April 06, 2026: ESM stage changes (Stage II → Stage I for TGL) and exclusions take effect; 2% price band under Periodic Call Auction for Stage II securities begins
  • April 07, 2026: 100% margin requirement and shift to Trade-for-Trade segment (BE/ST) effective for included securities

Impact Assessment

High impact on traders and investors holding positions in affected securities. The 100% margin requirement significantly increases the cost of carrying positions. The shift to Trade-for-Trade eliminates intraday netting, requiring full settlement for each trade. TGL (Teerth Gopicon Limited) moves from Stage II to Stage I, which may ease some restrictions for that stock. The exclusion of AMCL, ASLIND, AXITA, and CPS from the ESM framework is positive for those stocks, as price bands revert to normal and they return to the Rolling Settlement segment. Overall, the circular reflects ongoing active surveillance of potentially volatile or manipulated securities.

Impact Justification

Directly affects trading conditions for multiple securities — imposing 100% margin requirements, shifting securities to Trade-for-Trade segment, and modifying price bands. Immediate operational impact on brokers and investors holding or trading affected stocks.