NSE’s Surveillance department has issued Circular 328/2026 (Ref: NSE/SURV/74064) updating the Enhanced Surveillance Measure (ESM) framework. Eight securities are newly included under ESM Stage I, three securities are upgraded from Stage I to Stage II, and no securities are moved from Stage II back to Stage I. All affected securities will face a minimum 100% margin requirement and be shifted to the Trade-for-Trade settlement segment effective May 07, 2026.

Key Points

• 8 securities newly added to ESM Stage I effective May 06, 2026: AKANKSHA, ASTRON, CLASSICEIL, CPCAP, INDOWIND, OLIL, TECHLABS, TROM
• 3 securities escalated from ESM Stage I to Stage II effective May 06, 2026: BANKA, SETCO, SHYAMTEL
• No securities moved from Stage II to Stage I
• Minimum 100% margin applicable on all open positions as on May 06, 2026, and new positions from May 07, 2026
• Securities shifted from Rolling Settlement (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST) w.e.f. May 07, 2026
• Stage II securities subject to Trade for Trade with a 2% price band under Periodic Call Auction w.e.f. May 06, 2026
• ESM operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

This circular updates the ESM framework previously governed by circulars NSE/SURV/56948 (June 02, 2023), NSE/SURV/57609 (July 18, 2023), NSE/SURV/63361 (August 09, 2024), NSE/SURV/64066 (September 20, 2024), NSE/SURV/64400 (October 04, 2024), and NSE/SURV/69315 (July 25, 2025). The current update adds securities to Stage I, escalates Stage I securities to Stage II, and updates the consolidated list under Annexure III.

Compliance Requirements

• Members/Brokers: Must ensure minimum 100% margin is collected on all open positions in ESM-listed securities as on May 06, 2026, and on all new positions from May 07, 2026
• Trading Systems: Must reflect the segment shift from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) for all newly included and stage-changed securities from May 07, 2026
• Stage II Securities (BANKA, SETCO, SHYAMTEL): Trading must comply with the 2% price band under Periodic Call Auction mechanism from May 06, 2026
• Members should note that ESM inclusion is a market surveillance action and does not imply adverse findings against the company

Important Dates

• May 05, 2026: Circular issued
• May 06, 2026: ESM Stage I inclusion and Stage I-to-II transitions take effect; Stage II Periodic Call Auction with 2% price band begins
• May 07, 2026: 100% margin requirement on open positions (as of May 06) and new positions; Shift from EQ/SM to BE/ST segment for all newly covered securities

Impact Assessment

High impact on traders and investors holding positions in the 11 affected securities. The 100% margin requirement effectively doubles the capital required to hold or create positions, likely reducing liquidity significantly. The shift to Trade-for-Trade settlement eliminates the ability to net positions intraday, increasing settlement obligations. Stage II securities (BANKA, SETCO, SHYAMTEL) face the additional restriction of a 2% daily price band under Periodic Call Auction, severely limiting price discovery and exit opportunities. Investors in these stocks may see increased impact cost and reduced marketability of their holdings.

NSE has announced changes to the Short-Term Additional Surveillance Measure (ST-ASM) framework effective May 06, 2026. Eight securities have been newly added to Stage I, one security (WEBELSOLAR) moves from Stage I to Stage II with stricter surveillance, and nine securities are excluded from the ASM framework entirely — with some transitioning to Long-Term ASM (LTASM) or Enhanced Surveillance Measure (ESM) frameworks.

Key Points

• 8 securities newly added to ST-ASM Stage I w.e.f. May 06, 2026
• No securities directly added to ST-ASM Stage II
• 1 security (WEBELSOLAR / Websol Energy System Limited) escalated from Stage I to Stage II, indicating heightened surveillance
• No securities moved from Stage II back to Stage I
• 9 securities excluded from the ASM framework, with 3 moving to LTASM and 2 moving to ESM
• A consolidated ASM list covering all currently active ASM-listed securities is also provided

Regulatory Changes

Newly added to ST-ASM Stage I (w.e.f. May 06, 2026):

Moved from ST-ASM Stage I to Stage II (w.e.f. May 06, 2026):

Stage II to Stage I: Nil

Stage II newly added: Nil

Excluded from ASM Framework (w.e.f. May 06, 2026):

Compliance Requirements

• Trading members and investors must note the revised ASM applicability for the listed securities from May 06, 2026
• Securities under ST-ASM Stage I are subject to applicable additional margin requirements as per SEBI/NSE guidelines
• Securities under ST-ASM Stage II face stricter surveillance conditions including enhanced margins and trade-to-trade settlement
• IBULLSLTD, IRMENERGY, and VIDYAWIRES, while exiting STASM, are now under LTASM and remain subject to long-term surveillance restrictions
• CLASSICEIL and TROM transition to ESM (Enhanced Surveillance Measure), which carries its own set of trading restrictions

Important Dates

• Effective Date: May 06, 2026 — All additions, escalations, de-escalations, and exclusions take effect
• Circular Date: May 05, 2026

Impact Assessment

High impact on the 8 newly ASM Stage I securities (BCPL, CALSOFT, CEMPRO, MWL, OMAXAUTO, RICHA, SAIFL, STYLEBAAZA): investors will face higher margin requirements, potential trade-to-trade settlement constraints, and reduced liquidity, often leading to short-term price volatility.

Heightened impact on WEBELSOLAR: Escalation from Stage I to Stage II signals continued regulatory concern; Stage II typically involves stricter margin calls and enhanced monitoring, which may further suppress price and liquidity.

Positive signal for excluded securities (ADFFOODS, ARISTO, AYMSYNTEX, ELECON): Removal from ASM framework suggests improved surveillance metrics; may reduce trading friction and attract broader investor participation.

Neutral-to-cautious for LTASM/ESM transitions (IBULLSLTD, IRMENERGY, VIDYAWIRES, CLASSICEIL, TROM): These securities exit STASM but remain under alternative surveillance regimes, so restrictions are not fully lifted.