Description

NSE adds four securities to ESM Stage I and moves one security to Stage II effective April 17, 2026, requiring 100% margin and shift to Trade-for-Trade settlement from April 20, 2026.

Summary

NSE’s Surveillance Department has updated the Enhanced Surveillance Measure (ESM) framework under Circular Ref. No. 276/2026. Four new securities are included under ESM Stage I effective April 17, 2026, with 100% margin and Trade-for-Trade settlement applicable from April 20, 2026. Additionally, one security (TGL) is moved from Stage I to Stage II, subjecting it to a 2% price band under Periodic Call Auction from April 17, 2026.

Key Points

  • Four securities added to ESM Stage I: AFFORDABLE, MAGSON, PAVNAIND, and VITAL
  • One security elevated from ESM Stage I to Stage II: TGL (Teerth Gopicon Limited)
  • No securities excluded from the ESM framework in this update
  • No securities moved from Stage II back to Stage I
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ESM is for market surveillance purposes and should not be construed as adverse action against the companies

Regulatory Changes

  • Securities newly added to ESM Stage I (AFFORDABLE, MAGSON, PAVNAIND, VITAL) will be shifted from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) effective April 20, 2026
  • TGL (moving to Stage II) will be placed under Trade-for-Trade with a 2% price band under Periodic Call Auction effective April 17, 2026
  • Reference circulars: NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315

Compliance Requirements

  • Members must note minimum 100% margin requirements on all open positions as on April 17, 2026, for Stage I securities
  • 100% margin also applies to new positions created from April 20, 2026, in affected securities
  • Members dealing in TGL must adhere to the 2% price band restriction under Periodic Call Auction from April 17, 2026
  • Queries to be directed to surveillance@nse.co.in

Important Dates

  • April 17, 2026: ESM Stage I inclusions take effect; TGL moves to Stage II with 2% price band under Periodic Call Auction; open positions as of this date attract 100% margin from April 20
  • April 20, 2026: 100% margin mandatory on all open positions (as on April 17) and new positions; Stage I securities shift from EQ/SM to BE/ST (Trade-for-Trade)

Impact Assessment

AFFORDABLE (Affordable Robotic & Automation Ltd, INE692Z01013), MAGSON (Magson Retail And Distribution Ltd, INE0O1S01012), PAVNAIND (Pavna Industries Ltd, INE07S101038), and VITAL (Vital Chemtech Ltd, INE0L4K01016) face significantly reduced liquidity due to the move to Trade-for-Trade settlement and 100% margin requirements, effectively eliminating intraday trading and increasing capital requirements for traders.

TGL (Teerth Gopicon Ltd, INE0K6601012) faces the most restrictive conditions as a Stage II security, with trading limited to a 2% price band under Periodic Call Auction — severely constraining price discovery and exit options for existing investors.

The absence of any exclusions from the ESM framework in this update indicates no securities have met the exit criteria, suggesting ongoing surveillance concerns across the monitored universe.

Impact Justification

Five securities are directly affected with mandatory 100% margin requirements and segment shifts to Trade-for-Trade, significantly restricting trading flexibility and liquidity for holders of these stocks.