Description
NSE adds 8 securities to ESM Stage I and moves 2 securities to Stage II effective May 11-12, 2026, imposing 100% margin requirements and shifting affected scrips to Trade-for-Trade settlement.
Summary
NSE’s Surveillance Department has issued Circular NSE/SURV/74124 (Ref: 339/2026) announcing updates to the Enhanced Surveillance Measure (ESM) framework. Eight securities are newly included under ESM Stage I effective May 12, 2026, while two securities are escalated from Stage I to Stage II effective May 11, 2026. All affected securities face 100% margin requirements and mandatory migration from Rolling Settlement to the Trade-for-Trade segment.
Key Points
- 8 securities added to ESM Stage I w.e.f. May 12, 2026: CELLECOR, CHEMBOND, CHEMBONDCH, COMMITTED, E2ERAIL, LAXMIINDIA, NECLIFE, SVPGLOB
- 2 securities escalated to ESM Stage II w.e.f. May 11, 2026: AKSHOPTFBR (Aksh Optifibre Limited), EMAMIREAL (Emami Realty Limited)
- Minimum 100% margin applicable on all open positions as on May 11, 2026, and all new positions from May 12, 2026
- All newly included Stage I securities shift from Rolling Settlement (Series: EQ/SM) to Trade-for-Trade (Series: BE/ST) w.e.f. May 12, 2026
- Stage II securities placed under Trade-for-Trade with a 2% price band under Periodic Call Auction w.e.f. May 11, 2026
- A consolidated list of all securities currently under the ESM framework is provided in Annexure III
- Shortlisting under ESM is a surveillance action and should not be construed as adverse action against the company
Regulatory Changes
This circular updates the ESM framework originally established under circulars NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315 (dated June 2023 through July 2025). The ESM operates in conjunction with all other prevailing surveillance measures imposed by exchanges. Upon exit from the ESM framework, a security’s price band reverts to its pre-ESM level, provided it is not under any other surveillance measure.
Compliance Requirements
- NSE Members must ensure 100% margin is collected on all open positions in ESM-listed securities as of May 11, 2026, and on all new positions from May 12, 2026
- Members must note the segment migration from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) for Stage I securities
- For Stage II securities (AKSHOPTFBR, EMAMIREAL), trading must be conducted under Periodic Call Auction with a 2% price band
- Members may refer to the ESM FAQ at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm for full framework details
- Queries may be directed to surveillance@nse.co.in
Important Dates
| Event | Effective Date |
|---|---|
| Stage II (AKSHOPTFBR, EMAMIREAL): Trade-for-Trade + 2% price band under Periodic Call Auction | May 11, 2026 |
| Stage I securities: 100% margin on existing open positions | May 11, 2026 (close of day) |
| Stage I securities: Shift to Trade-for-Trade (BE/ST) + 100% margin on new positions | May 12, 2026 |
Impact Assessment
High impact on the 10 affected stocks. The mandatory shift to Trade-for-Trade settlement eliminates netting benefits and requires full upfront funds/securities delivery, significantly reducing trading flexibility. The 100% margin requirement effectively doubles capital requirements for positions in these scrips, likely reducing institutional and retail participation. Stage II securities (AKSHOPTFBR, EMAMIREAL) face additional restrictions via a 2% daily price band under Periodic Call Auction, severely limiting price discovery and liquidity. Overall, these measures are expected to suppress volumes and increase bid-ask spreads in affected securities. Traders and investors holding positions in any of the 10 listed stocks should review their margin sufficiency and settlement obligations before May 11, 2026.
Impact Justification
Affects 10 stocks with significant trading restrictions including 100% margin requirements, forced shift to Trade-for-Trade settlement, and for Stage II stocks a restrictive 2% price band under Periodic Call Auction — materially limiting liquidity and trading activity for all affected securities.