NSE has issued Circular 330/2026 (Ref: NSE/SURV/74080) dated May 06, 2026, announcing updates to the Enhanced Surveillance Measure (ESM) framework. Eight securities are newly added to ESM Stage I, one security (INSPIRE) is elevated from Stage I to Stage II, and no securities are being removed from the framework.

Key Points

• 8 securities newly included in ESM Stage I, attracting minimum 100% margin w.e.f. May 08, 2026 on all open and new positions
• All 8 new Stage I securities will shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series) w.e.f. May 08, 2026
• INSPIRE (Inspire Films Limited, INE0NDX01019) moves from ESM Stage I to Stage II w.e.f. May 07, 2026, with a 2% price band under Periodic Call Auction
• No securities are being moved from Stage II to Stage I
• No securities are being excluded from the ESM framework
• ESM operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

This circular updates the ESM framework as 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). Securities satisfying ESM criteria are placed under heightened surveillance with trading restrictions to protect market integrity.

Newly Added to ESM Stage I (w.e.f. May 07, 2026; T2T from May 08, 2026):

Stage I to Stage II (w.e.f. May 07, 2026):

Stage II to Stage I: Nil

Excluded from ESM Framework: Nil

Compliance Requirements

• Brokers/Members: Must ensure minimum 100% margin is collected on all open positions (as of May 07, 2026) and new positions (from May 08, 2026) in the 8 newly added Stage I securities
• Trading systems: Must reflect migration of affected securities from EQ/SM series to BE/ST series from May 08, 2026
• For INSPIRE (Stage II): Trades must be conducted under Trade-for-Trade with a 2% price band under Periodic Call Auction from May 07, 2026
• Members are advised that ESM classification is a surveillance action and should not be construed as adverse action against the concerned company
• Queries may be directed to surveillance@nse.co.in

Important Dates

• May 06, 2026: Circular issued
• May 07, 2026: ESM Stage I inclusions effective; INSPIRE moves to Stage II (with 2% price band under Periodic Call Auction and Trade-for-Trade)
• May 08, 2026: 100% margin requirement effective on new positions for Stage I securities; EQ/SM to BE/ST segment migration effective for all 8 new Stage I securities

Impact Assessment

High impact on traders and investors holding or intending to trade in the 9 affected securities:

• Liquidity reduction: Mandatory Trade-for-Trade settlement eliminates netting benefits and intraday squaring off, significantly reducing trading interest and liquidity in these securities
• Capital requirement increase: 100% margin requirement on open and new positions substantially raises the cost of holding or trading these stocks, likely depressing volumes
• INSPIRE (Stage II) - most restrictive: The 2% daily price band under Periodic Call Auction is the most severe restriction, virtually freezing price discovery and making exit/entry extremely difficult
• Investor caution warranted: Inclusion is based on market surveillance criteria (e.g., price-volume anomalies, corporate governance concerns) and signals elevated risk
• No removals this cycle: The absence of any exclusions from the framework indicates no securities have met the criteria for relaxation of surveillance measures in this review