NSE’s Surveillance department (Circular Ref. No. 255/2026, Download Ref No: NSE/SURV/73677) announces updates to the Enhanced Surveillance Measure (ESM) framework. Six securities are newly included under ESM Stage I, and seven securities are escalated from Stage I to Stage II. All affected securities will be shifted from the Rolling Settlement segment (Series: EQ/SM) to the Trade-for-Trade segment (Series: BE/ST) effective April 13, 2026.

Key Points

• 6 securities newly added to ESM Stage I, effective April 13, 2026, with 100% margin on all open positions as of April 10, 2026, and new positions from April 13, 2026
• 7 securities escalated from ESM Stage I to Stage II, subject to Trade-for-Trade with a 2% price band under Periodic Call Auction effective April 10, 2026
• No securities moving from Stage II back to Stage I (Nil)
• All ESM-qualified securities migrate from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) series
• ESM framework operates alongside all other prevailing surveillance measures
• Shortlisting is purely for market surveillance purposes and should not be construed as adverse action against the company

Regulatory Changes

This circular references and updates the ESM framework established under earlier circulars: NSE/SURV/56948 (Jun 02, 2023), NSE/SURV/57609 (Jul 18, 2023), NSE/SURV/63361 (Aug 09, 2024), NSE/SURV/64066 (Sep 20, 2024), NSE/SURV/64400 (Oct 04, 2024), and NSE/SURV/69315 (Jul 25, 2025). Securities escalated to Stage II face an additional restriction of a 2% price band under Periodic Call Auction, representing a more stringent trading constraint than Stage I.

Compliance Requirements

• NSE Members: Note the updated ESM security lists and apply the required margin and settlement changes from the effective dates
• For ESM Stage I inclusions: Collect minimum 100% margin on all open positions as of April 10, 2026, and on all new positions from April 13, 2026
• For ESM Stage II escalations: Apply Trade-for-Trade with 2% price band under Periodic Call Auction from April 10, 2026
• Queries to be directed to surveillance@nse.co.in

Important Dates

• April 09, 2026: Circular issuance date
• April 10, 2026: Stage I to Stage II escalation effective; 100% margin applicable on open positions for new Stage I inclusions
• April 13, 2026: New Stage I securities shifted to BE/ST (Trade-for-Trade); 100% margin applicable on new positions

Impact Assessment

Newly added to ESM Stage I (effective April 13, 2026):

Escalated from Stage I to Stage II (effective April 10, 2026):

Investors and traders in these 13 securities face significantly reduced liquidity due to Trade-for-Trade restrictions (no intraday netting), mandatory 100% upfront margins, and in the case of Stage II securities, a highly restrictive 2% daily price band. These measures typically suppress trading volumes and may lead to price discovery challenges.