Description
NSE adds five securities to ESM Stage I effective April 28, 2026, requiring 100% margin and shifting them from Rolling Settlement (EQ/SM) to Trade-for-Trade segment (BE/ST) from April 29, 2026.
Summary
NSE’s Surveillance department has issued Circular No. 302/2026 (Ref: NSE/SURV/73918) dated April 27, 2026, placing five securities under the Enhanced Surveillance Measure (ESM) Stage I effective April 28, 2026. These securities will attract a minimum 100% margin from April 29, 2026, and will be migrated from Rolling Settlement (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST). No securities are moving between ESM stages or being excluded from the framework in this update.
Key Points
- Five securities added to ESM Stage I: FILATFASH, KHAITANLTD, OMFURN, RITEZONE, and ZODIAC
- Minimum 100% margin applicable w.e.f. April 29, 2026 on all open positions as on April 28, 2026, and new positions from April 29, 2026
- Securities to shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) w.e.f. April 29, 2026
- No securities are moving from Stage I to Stage II, or Stage II to Stage I
- No securities are being excluded from the ESM framework
- ESM framework operates alongside all other prevailing surveillance measures
- Inclusion in ESM is purely a surveillance action and should not be construed as adverse action against the company
Regulatory Changes
This circular is issued under the ESM framework established via earlier circulars: NSE/SURV/56948 (June 02, 2023), NSE/SURV/57609 (July 18, 2023), NSE/SURV/63361 (August 09, 2024), NSE/SURV/64066 (September 20, 2024), NSE/SURV/64400 (October 04, 2024), and NSE/SURV/69315 (July 25, 2025). The five newly included securities will be subject to Trade-for-Trade settlement with applicable price bands. Securities shifting to Stage II (none in this circular) would additionally face a 2% price band under Periodic Call Auction.
Compliance Requirements
- Members/Brokers: Ensure clients maintain minimum 100% margin on all open positions in the five listed securities as on April 28, 2026, and for new positions created from April 29, 2026
- Members/Brokers: Note the segment migration from EQ/SM to BE/ST effective April 29, 2026, and update trading systems accordingly
- Market Participants: Trade these securities only in Trade-for-Trade mode post migration; intraday square-off will not be permitted
- For queries, contact surveillance@nse.co.in
Important Dates
| Date | Event |
|---|---|
| April 27, 2026 | Circular issued |
| April 28, 2026 | ESM Stage I inclusion effective; open positions attract 100% margin |
| April 29, 2026 | 100% margin on new positions; segment migration EQ/SM → BE/ST effective |
Impact Assessment
Affected Securities (ESM Stage I, effective April 28, 2026):
| Sr. No. | Symbol | Security Name | ISIN |
|---|---|---|---|
| 1 | FILATFASH | Filatex Fashions Limited | INE185E01021 |
| 2 | KHAITANLTD | Khaitan (India) Limited | INE731C01018 |
| 3 | OMFURN | Omfurn India Limited | INE338Y01016 |
| 4 | RITEZONE | Rite Zone Chemcon India Limited | INE0MRA01019 |
| 5 | ZODIAC | Zodiac Energy Limited | INE761Y01019 |
Trading Impact: Migration to Trade-for-Trade (BE/ST) eliminates intraday netting; all trades must result in delivery. This significantly reduces liquidity and speculative activity in these scrips.
Margin Impact: The 100% margin requirement substantially increases the capital needed to hold or create positions, effectively discouraging leveraged exposure.
Investor Caution: Retail and institutional investors holding or planning positions in these securities should reassess their exposure given the heightened surveillance status, increased margin costs, and restricted settlement mechanism.
Impact Justification
Five securities are placed under ESM Stage I with 100% margin requirements and segment migration from EQ/SM to BE/ST, directly impacting trading conditions, margin obligations, and settlement for positions in these stocks.