Description
NSE adds six securities to ESM Stage I effective April 30, 2026, requiring 100% margin and shift from Rolling Settlement to Trade-for-Trade segment from May 4, 2026.
Summary
NSE has placed six securities under Enhanced Surveillance Measure (ESM) Stage I effective April 30, 2026. These securities will attract a minimum 100% margin on all open and new positions from May 4, 2026, and will be shifted from the Rolling Settlement segment (EQ/SM series) to the Trade-for-Trade segment (BE/ST series) effective May 4, 2026. No securities are being excluded from or moved between ESM stages in this circular.
Key Points
- Six new securities added to ESM Stage I w.e.f. April 30, 2026
- Minimum 100% margin applicable on all open positions as on April 30, 2026 and new positions from May 4, 2026
- All six securities to shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) w.e.f. May 4, 2026
- No securities are being moved from Stage I to Stage II or Stage II to Stage I
- No securities are being excluded from the ESM framework
- ESM framework applies in conjunction with all other prevailing surveillance measures
- ESM shortlisting is purely for market surveillance purposes and should not be construed as adverse action against the companies
Regulatory Changes
The following securities are newly included under ESM Stage I:
| Sr. No. | Symbol | Security Name | ISIN |
|---|---|---|---|
| 1 | AAREYDRUGS | Aarey Drugs & Pharmaceuticals Limited | INE198H01019 |
| 2 | ARVINDPORT | Arvind Port and Infra Limited | INE0P4T01013 |
| 3 | INVICTA | Invicta Diagnostic Limited | INE0XJ501010 |
| 4 | SALSTEEL | S.A.L. Steel Limited | INE658G01014 |
| 5 | VPRPL | Vishnu Prakash R Punglia Limited | INE0AE001013 |
| 6 | WHITEFORCE | Happy Square Outsourcing Services Limited | INE0TLP01015 |
This circular references earlier ESM circulars: NSE/SURV/56948 (June 2, 2023), NSE/SURV/57609 (July 18, 2023), NSE/SURV/63361 (August 9, 2024), NSE/SURV/64066 (September 20, 2024), NSE/SURV/64400 (October 4, 2024), and NSE/SURV/69315 (July 25, 2025).
Compliance Requirements
- Brokers/Members: Must ensure 100% margin is collected on all open positions in the listed securities as on April 30, 2026, and on all new positions created from May 4, 2026
- Trading Systems: Must update trading parameters to reflect the segment shift from EQ/SM to BE/ST for all six securities
- Market Participants: Should note that Stage II securities (if any) will be subject to Trade-for-Trade with a 2% price band under Periodic Call Auction w.e.f. April 30, 2026
- For queries, contact: surveillance@nse.co.in
Important Dates
- April 30, 2026: ESM Stage I inclusion effective; 100% margin applies to open positions as of this date; Stage II Periodic Call Auction restrictions effective
- May 4, 2026: Segment shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) effective for all six newly included securities; 100% margin applies to all new positions from this date
Impact Assessment
The inclusion of six securities under ESM Stage I carries significant market impact:
- Liquidity Impact (High): Shift to Trade-for-Trade (BE/ST) eliminates netting benefits, sharply reducing liquidity and making it harder for institutional and retail investors to exit positions efficiently
- Margin Impact (High): 100% margin requirement substantially increases the cost of holding or creating positions in these securities, likely leading to forced unwinding by leveraged participants
- Price Impact (Medium-High): Increased margin requirements and reduced liquidity typically exert downward pressure on stock prices in the near term
- Retail Investors: Holders of AAREYDRUGS, ARVINDPORT, INVICTA, SALSTEEL, VPRPL, and WHITEFORCE should be aware of the trading restrictions and reassess position sizing given the new margin requirements
- No Exclusions: The absence of any exclusions from the ESM framework in this update indicates no improvement in surveillance status for previously listed securities
Impact Justification
Six securities face immediate trading restrictions including 100% margin requirements and mandatory shift to Trade-for-Trade segment, significantly impacting liquidity and trading flexibility for holders of these stocks.