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.