Description

NSE circular announcing securities being added to and consolidated under the Enhanced Surveillance Measure (ESM) framework effective May 20, 2026, with 2 new securities entering Stage I and no changes to Stage II movements or exclusions.

Summary

NSE has issued a circular announcing the applicability of the Enhanced Surveillance Measure (ESM) framework effective May 20, 2026. Two securities — Sanco Industries Limited (SANCO) and Supreme Engineering Limited (SUPREMEENG) — have been newly shortlisted for ESM Stage I. No securities are moving between Stage I and Stage II or being excluded from the ESM framework in this update. The consolidated ESM list includes 23 securities in Stage II and a large number in Stage I.

Key Points

  • 2 new securities added to ESM Stage I effective May 20, 2026: SANCO (Sanco Industries Limited, INE782L01012) and SUPREMEENG (Supreme Engineering Limited, INE319Z01021)
  • No securities moving from ESM Stage I to Stage II
  • No securities moving from ESM Stage II to Stage I
  • No securities excluded from the ESM framework
  • Consolidated ESM list contains 23 securities in Stage II and numerous securities in Stage I
  • Stage II securities include: AKSHOPTFBR, AVATAR, BANKA, BOHRAIND, DCMFINSERV, EMAMIREAL, EMPOWER, EXCELLENT, GLFL, INSPIRE, LLOYDS, LOYALTEX, NAHARSPING, S&SPOWER, SADHNANIQ, SANGINITA, SETCO, SHYAMTEL, SWASTIK, TGL, UCL, UNIVPHOTO, VILINBIO

Regulatory Changes

The ESM framework applies enhanced surveillance to securities exhibiting abnormal price/volume behaviour or other risk indicators. Stage I imposes trade-to-trade settlement and price bands; Stage II involves more stringent restrictions including periodic call auction mechanisms. This circular updates the ESM applicability list as part of NSE’s ongoing market surveillance program.

Compliance Requirements

  • Trading members must note ESM restrictions applicable to newly added and existing ESM securities from May 20, 2026
  • Trades in ESM securities are subject to enhanced margin requirements and settlement norms
  • Investors holding or intending to trade in ESM-listed securities must comply with applicable ESM trading restrictions
  • Members should update their systems and client advisories to reflect the revised ESM list

Important Dates

  • Effective Date: May 20, 2026 — ESM Stage I inclusion of SANCO and SUPREMEENG takes effect
  • Circular Date: May 19, 2026

Impact Assessment

The addition of SANCO and SUPREMEENG to ESM Stage I will significantly impact liquidity and trading activity in these securities. ESM Stage I mandates trade-to-trade settlement, meaning no intraday squaring off is permitted and all trades result in compulsory delivery. This typically leads to reduced trading volumes and increased caution among market participants. The 23 securities already in Stage II face the most stringent restrictions. Investors in any of the listed securities should be aware of the associated trading constraints and potential impact on their ability to exit positions.

Impact Justification

ESM placement significantly restricts trading in affected securities, impacting liquidity and investor activity. Two new securities enter Stage I effective May 20, 2026, while the consolidated list includes 23 Stage II and multiple Stage I securities facing heightened surveillance and trade restrictions.