Description

NSE announces inclusion of 6 securities under ESM Stage I with 100% margin requirement and shift to Trade-for-Trade segment effective May 5, 2026. Securities moving between ESM stages are also specified.

Summary

NSE has issued Circular 314/2026 announcing the applicability of Enhanced Surveillance Measure (ESM) for a fresh set of securities. Six securities have been shortlisted for inclusion under ESM Stage I, attracting a minimum 100% margin requirement and mandatory migration from the Rolling Settlement segment (EQ/SM) to the Trade-for-Trade segment (BE/ST) effective May 5, 2026. Two securities are eligible to move from ESM Stage II back to Stage I effective May 4, 2026. No securities are moving from Stage I to Stage II.

Key Points

  • Six securities newly shortlisted under ESM Stage I effective May 4–5, 2026
  • Minimum 100% margin applicable on all open positions as on May 4, 2026, and new positions from May 5, 2026
  • Securities marked with * will move from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) segment effective May 5, 2026
  • ABANSENT (Abans Enterprises) is additionally flagged as per BSE listing
  • No securities are moving from ESM Stage I to Stage II (Nil)
  • Two securities (PARASPETRO, SANGINITA) moving from ESM Stage II back to Stage I effective May 4, 2026
  • Stage II securities are subject to Trade-for-Trade with a 2% price band under Periodic Call Auction effective May 4, 2026
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

  • New ESM Stage I Additions (w.e.f. May 4–5, 2026):

    • ABANSENT – Abans Enterprises Limited (INE365O01028)
    • ACCPL – Accretion Pharmaceuticals Limited (INE0T8T01010)
    • EPWINDIA – EPW India Limited (INE1KEC01023)
    • KSHITIJPOL – Kshitij Polyline Limited (INE013801027)
    • VASCONEQ – Vascon Engineers Limited (INE893I01013)
    • VMSTMT – VMS TMT Limited (INE0SJA01013)

  • ESM Stage II → Stage I Movement (w.e.f. May 4, 2026):

    • PARASPETRO – Paras Petrofils Limited (INE162C01024)
    • SANGINITA – Sanginita Chemicals Limited

  • ESM Stage I → Stage II Movement: Nil

  • Price band of scrips exiting the ESM framework shall be reinstated to the band applicable before ESM shortlisting, unless the scrip is under another surveillance measure.

Compliance Requirements

  • NSE Members must ensure a minimum 100% margin is collected on all open positions in newly listed ESM securities as on May 4, 2026, and on new positions created from May 5, 2026
  • Members must account for the segment migration of applicable securities from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) effective May 5, 2026
  • Members should be aware of the 2% price band under Periodic Call Auction applicable for Stage II securities
  • Members are advised to refer to NSE FAQs on ESM for detailed operational guidance: https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm
  • Queries may be directed to surveillance@nse.co.in

Important Dates

  • May 4, 2026: ESM Stage II securities trade under 2% price band in Periodic Call Auction; Stage II → Stage I movements take effect; 100% margin applicable on existing open positions
  • May 5, 2026: New ESM Stage I securities migrate to Trade-for-Trade (BE/ST) segment; 100% margin applicable on new positions

Impact Assessment

The circular has a high market impact on the eight named securities. Inclusion under ESM Stage I imposes significant trading restrictions — 100% upfront margin eliminates leveraged positions, and migration to the Trade-for-Trade segment removes netting benefits, reducing liquidity substantially. This typically leads to sharp price corrections and reduced trading volumes in the affected stocks. The Stage II → Stage I downgrade for PARASPETRO and SANGINITA offers partial relief from the stricter 2% Periodic Call Auction band, potentially improving their liquidity marginally. Market participants holding positions in these scrips must arrange additional margin capital by May 4, 2026, or risk forced liquidation. The shortlisting is purely surveillance-driven and does not constitute a regulatory action against the companies.

Impact Justification

Directly imposes 100% margin requirement and segment transfer to Trade-for-Trade for 6 securities, materially restricting liquidity and trading conditions for named stocks.