NSE has issued Circular No. 334/2026 (Ref: NSE/SURV/74103) dated May 07, 2026, announcing changes under the Enhanced Surveillance Measure (ESM) framework. Five new securities are included under ESM Stage I effective May 08, 2026, three securities are upgraded from Stage I to Stage II, and no securities are being excluded from the framework.

Key Points

• 5 securities newly shortlisted under ESM Stage I w.e.f. May 08, 2026: CALSOFT, GURUNANAK, INNOMET, MUNISH, PLAZACABLE
• 3 securities moving from ESM Stage I to Stage II w.e.f. May 08, 2026: NAHARSPING, SADHNANIQ, SWASTIK
• No securities moving from Stage II to Stage I; no securities excluded from ESM framework
• Minimum 100% margin applicable on all open positions as on May 08, 2026, and new positions from May 11, 2026
• All newly included securities shift from Rolling Settlement (EQ/SM series) to Trade-for-Trade segment (BE/ST series) w.e.f. May 11, 2026
• Securities shifting to Stage II will be under Trade for Trade with a 2% price band under Periodic Call Auction w.e.f. May 08, 2026
• ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

The circular references and builds upon earlier ESM 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 expands the list of securities under heightened surveillance and tightens trading conditions for Stage II securities with a strict 2% price band under Periodic Call Auction.

Compliance Requirements

• NSE members must ensure 100% margin is collected on open positions in affected securities as on May 08, 2026
• Members must apply 100% margin on all new positions in these securities from May 11, 2026
• Trading in affected securities must be conducted in the Trade-for-Trade (BE/ST) segment from May 11, 2026
• For Stage II securities (NAHARSPING, SADHNANIQ, SWASTIK), trading is restricted to Periodic Call Auction with a 2% price band from May 08, 2026
• Members may direct queries to surveillance@nse.co.in

Important Dates

• May 07, 2026: Circular issued
• May 08, 2026: ESM Stage I inclusions and Stage I-to-Stage II transitions effective; 100% margin applicable on open positions; Stage II Periodic Call Auction with 2% price band begins
• May 11, 2026: New ESM Stage I securities shift from EQ/SM to BE/ST (Trade-for-Trade); 100% margin applicable on new positions

Impact Assessment

The five newly included securities (CALSOFT, GURUNANAK, INNOMET, MUNISH, PLAZACABLE) will face significantly reduced liquidity as they move to the Trade-for-Trade segment, eliminating netting of trades and requiring full settlement of each transaction. The mandatory 100% margin requirement substantially increases the cost of holding or creating positions. The three securities moving to Stage II (NAHARSPING, SADHNANIQ, SWASTIK) face even more restrictive conditions with a 2% daily price band under Periodic Call Auction, severely limiting price discovery and intraday trading. NSE emphasizes that ESM inclusion is a surveillance action and should not be interpreted as an adverse regulatory finding against the company. Retail and institutional investors in these securities should be aware of the significantly constrained trading environment.