Description

NSE announces inclusion of EMPOWER and SOFTTECH in ESM Stage I, and movement of UNIVPHOTO to Stage II, effective May 05-06, 2026, with mandatory 100% margin and shift to Trade-for-Trade settlement.

Summary

NSE’s Surveillance department has issued Circular NSE/SURV/74038 (Ref. No. 323/2026) updating the list of securities under the Enhanced Surveillance Measure (ESM) framework. Two new securities — EMPOWER and SOFTTECH — are being added to ESM Stage I, while UNIVPHOTO is being moved from Stage I to Stage II. No securities are being excluded from the framework. These changes are effective May 05–06, 2026, and carry significant trading restrictions including mandatory 100% margin and migration to Trade-for-Trade settlement.

Key Points

  • EMPOWER (Empower India Limited, INE507F01023) and SOFTTECH (Softtech Engineers Limited, INE728Z01015) are newly included under ESM Stage I effective May 05, 2026.
  • UNIVPHOTO (Universus Photo Imagings Limited, INE03V001013) moves from ESM Stage I to Stage II effective May 05, 2026.
  • No securities are being moved from Stage II to Stage I; no securities are being excluded from the ESM framework.
  • All securities entering or already under ESM will attract a minimum 100% margin on open positions as of May 05, 2026 and on new positions from May 06, 2026.
  • ESM securities are shifted from Rolling Settlement (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) effective May 06, 2026.
  • Stage II securities will be placed under Trade-for-Trade with a 2% price band under Periodic Call Auction effective May 05, 2026.
  • ESM classification is based solely on market surveillance criteria and does not constitute adverse action against the company.

Regulatory Changes

The circular updates the ESM framework in line with previous circulars: NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315. The consolidated ESM list now includes BOHRAIND (Bohra Industries Limited, Stage II), CAPTRUST (Capital Trust Limited), EMPOWER, SOFTTECH, and UNIVPHOTO among others. The ESM framework operates in conjunction with all other prevailing surveillance measures imposed by exchanges.

Compliance Requirements

  • NSE members must ensure 100% margin is collected on all open positions in ESM-listed securities as on May 05, 2026, and on any new positions created from May 06, 2026.
  • Members must update systems to reflect the segment migration of ESM securities from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) effective May 06, 2026.
  • For Stage II securities (including UNIVPHOTO), members must apply Trade-for-Trade rules with a 2% price band under Periodic Call Auction from May 05, 2026.
  • Members may refer to NSE’s ESM FAQs at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm for further details.
  • Queries can be directed to surveillance@nse.co.in.

Important Dates

  • May 04, 2026: Circular issued.
  • May 05, 2026: ESM Stage I inclusion effective for EMPOWER and SOFTTECH; UNIVPHOTO moves to Stage II; Stage II price band of 2% under Periodic Call Auction effective; 100% margin applicable on open positions.
  • May 06, 2026: Migration from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) effective; 100% margin applicable on new positions.

Impact Assessment

The inclusion of EMPOWER and SOFTTECH in ESM Stage I and the escalation of UNIVPHOTO to Stage II will significantly restrict trading activity in these securities. The mandatory 100% margin requirement substantially increases the cost of holding or creating positions, likely reducing liquidity. The shift to Trade-for-Trade settlement eliminates netting of positions, forcing full delivery obligations on all trades. UNIVPHOTO faces the additional constraint of a 2% price band under Periodic Call Auction, severely limiting intraday price movement. Traders and investors holding positions in these securities should review their margin availability and settlement obligations urgently before May 05, 2026.

Impact Justification

Imposes 100% margin requirements and mandatory shift to Trade-for-Trade segment for multiple securities, directly restricting trading activity and increasing cost of positions effective within 48 hours.