NSE has placed six securities under Enhanced Surveillance Measure (ESM) Stage I effective April 30, 2026. These securities will attract a minimum 100% margin on all open and new positions from May 4, 2026, and will be shifted from the Rolling Settlement segment (EQ/SM series) to the Trade-for-Trade segment (BE/ST series) effective May 4, 2026. No securities are being excluded from or moved between ESM stages in this circular.

Key Points

• Six new securities added to ESM Stage I w.e.f. April 30, 2026
• Minimum 100% margin applicable on all open positions as on April 30, 2026 and new positions from May 4, 2026
• All six securities to shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) w.e.f. May 4, 2026
• No securities are being moved from Stage I to Stage II or Stage II to Stage I
• No securities are being excluded from the ESM framework
• ESM framework applies in conjunction with all other prevailing surveillance measures
• ESM shortlisting is purely for market surveillance purposes and should not be construed as adverse action against the companies

Regulatory Changes

The following securities are newly included under ESM Stage I:

This circular references earlier ESM circulars: NSE/SURV/56948 (June 2, 2023), NSE/SURV/57609 (July 18, 2023), NSE/SURV/63361 (August 9, 2024), NSE/SURV/64066 (September 20, 2024), NSE/SURV/64400 (October 4, 2024), and NSE/SURV/69315 (July 25, 2025).

Compliance Requirements

• Brokers/Members: Must ensure 100% margin is collected on all open positions in the listed securities as on April 30, 2026, and on all new positions created from May 4, 2026
• Trading Systems: Must update trading parameters to reflect the segment shift from EQ/SM to BE/ST for all six securities
• Market Participants: Should note that Stage II securities (if any) will be subject to Trade-for-Trade with a 2% price band under Periodic Call Auction w.e.f. April 30, 2026
• For queries, contact: surveillance@nse.co.in

Important Dates

• April 30, 2026: ESM Stage I inclusion effective; 100% margin applies to open positions as of this date; Stage II Periodic Call Auction restrictions effective
• May 4, 2026: Segment shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) effective for all six newly included securities; 100% margin applies to all new positions from this date

Impact Assessment

The inclusion of six securities under ESM Stage I carries significant market impact:

• Liquidity Impact (High): Shift to Trade-for-Trade (BE/ST) eliminates netting benefits, sharply reducing liquidity and making it harder for institutional and retail investors to exit positions efficiently
• Margin Impact (High): 100% margin requirement substantially increases the cost of holding or creating positions in these securities, likely leading to forced unwinding by leveraged participants
• Price Impact (Medium-High): Increased margin requirements and reduced liquidity typically exert downward pressure on stock prices in the near term
• Retail Investors: Holders of AAREYDRUGS, ARVINDPORT, INVICTA, SALSTEEL, VPRPL, and WHITEFORCE should be aware of the trading restrictions and reassess position sizing given the new margin requirements
• No Exclusions: The absence of any exclusions from the ESM framework in this update indicates no improvement in surveillance status for previously listed securities