NSE has shortlisted 9 securities under the Enhanced Surveillance Measure (ESM) Stage I effective April 20–21, 2026. These securities will attract a minimum 100% margin on all open and new positions, and will be shifted from the Rolling Settlement segment (EQ/SM) to the Trade-for-Trade segment (BE/ST). No securities are moving from Stage I to Stage II or exiting the framework in this update.

Key Points

• 9 securities added to ESM Stage I w.e.f. April 20, 2026
• Minimum 100% margin applicable on all open positions as on April 20, 2026 and new positions from April 21, 2026
• All ESM Stage I securities shifted from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) w.e.f. April 21, 2026
• No securities moving from Stage I to Stage II in this update (Nil)
• Stage II securities placed under Trade-for-Trade with 2% price band under Periodic Call Auction w.e.f. April 20, 2026
• ESM framework operates in conjunction with all other prevailing surveillance measures
• Shortlisting is purely for market surveillance and not an adverse action against the company

Regulatory Changes

This circular is issued with reference to prior Exchange Circulars NSE/SURV/56948, NSE/SURV/57609, NSE/SURV/63361, NSE/SURV/64066, NSE/SURV/64400, and NSE/SURV/69315 dated June 2, 2023 through July 25, 2025. The current update adds securities to ESM Stage I and mandates their migration to Trade-for-Trade settlement.

On exit from the ESM framework, the price band of a scrip will be reinstated to the band applicable before shortlisting, unless the scrip is part of another surveillance measure, in which case the relevant surveillance framework’s price band prevails.

Compliance Requirements

• NSE Members: Note the updated ESM list and apply 100% margin on affected securities
• Members: Ensure client positions in listed securities comply with Trade-for-Trade settlement rules from April 21, 2026
• Members should refer to the ESM FAQs at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm for detailed guidance
• Queries can be directed to surveillance@nse.co.in

Important Dates

• April 20, 2026: ESM Stage I inclusion effective; 100% margin applicable on open positions; Stage II securities move to Periodic Call Auction with 2% price band
• April 21, 2026: Affected securities shift from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade); 100% margin on new positions

Impact Assessment

Stocks Affected (ESM Stage I, effective April 21, 2026):

The shift to Trade-for-Trade settlement eliminates intraday netting, requiring full delivery for every trade. Combined with the 100% margin requirement, this significantly increases the capital burden and reduces liquidity for these securities, typically leading to a decline in trading volumes and investor participation.