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

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.