NSE has announced changes to the Long-Term Additional Surveillance Measure (LTASM) framework effective May 11, 2026. Seven securities are being newly added to LTASM Stage I, one security is moving from Stage IV to Stage III, two securities are moving from Stage II to Stage I (downgrade), and three securities are being excluded from the ASM framework entirely.

Key Points

• 7 securities newly shortlisted under LTASM Framework Stage I w.e.f. May 11, 2026
• 2 securities (JAINAM, NAMOEWASTE) moved from Short-Term ASM (STASM) to LTASM framework
• No securities shortlisted for Stage IV, or for upward stage movements (Stage I→II, II→III, I→IV, II→IV, III→IV)
• ATLANTAELE moves down from Stage IV to Stage III
• ANONDITA and OMNI move down from Stage II to Stage I
• 3 securities excluded from ASM framework entirely, including NECLIFE and SVPGLOB which move to ESM framework

Regulatory Changes

• Securities placed under LTASM Stage IV are subject to shift from Rolling Settlement (Series: EQ) to Trade for Trade (Series: BE) on a T+3 basis per Criteria VII
• Securities moved from STASM to LTASM indicates escalation of surveillance concern
• Exclusions from ASM for NECLIFE and SVPGLOB are accompanied by migration to Enhanced Surveillance Measure (ESM) framework

Compliance Requirements

• Market participants and brokers must note revised settlement mechanisms for affected securities
• Additional margin requirements apply to securities under LTASM as per NSE surveillance guidelines
• Trading members should update client-facing disclosures for securities newly entering or changing stages within LTASM

Important Dates

• Effective Date: May 11, 2026 — all stage changes, additions, and exclusions take effect
• Circular Date: May 8, 2026

Impact Assessment

Newly added to LTASM Stage I (higher surveillance, margin requirements):

*Moved from STASM to LTASM framework

Stage downgrade (reduced surveillance intensity):

Excluded from ASM framework:

*Moved from LTASM to ESM framework. Securities entering LTASM face enhanced margin requirements and potential trading restrictions. Stage IV securities face Trade-for-Trade settlement, significantly impacting liquidity.

NSE’s Surveillance Department has issued Circular NSE/SURV/74124 (Ref: 339/2026) announcing updates to the Enhanced Surveillance Measure (ESM) framework. Eight securities are newly included under ESM Stage I effective May 12, 2026, while two securities are escalated from Stage I to Stage II effective May 11, 2026. All affected securities face 100% margin requirements and mandatory migration from Rolling Settlement to the Trade-for-Trade segment.

Key Points

• 8 securities added to ESM Stage I w.e.f. May 12, 2026: CELLECOR, CHEMBOND, CHEMBONDCH, COMMITTED, E2ERAIL, LAXMIINDIA, NECLIFE, SVPGLOB
• 2 securities escalated to ESM Stage II w.e.f. May 11, 2026: AKSHOPTFBR (Aksh Optifibre Limited), EMAMIREAL (Emami Realty Limited)
• Minimum 100% margin applicable on all open positions as on May 11, 2026, and all new positions from May 12, 2026
• All newly included Stage I securities shift from Rolling Settlement (Series: EQ/SM) to Trade-for-Trade (Series: BE/ST) w.e.f. May 12, 2026
• Stage II securities placed under Trade-for-Trade with a 2% price band under Periodic Call Auction w.e.f. May 11, 2026
• A consolidated list of all securities currently under the ESM framework is provided in Annexure III
• Shortlisting under ESM is a surveillance action and should not be construed as adverse action against the company

Regulatory Changes

This circular updates the ESM framework 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). The ESM operates in conjunction with all other prevailing surveillance measures imposed by exchanges. Upon exit from the ESM framework, a security’s price band reverts to its pre-ESM level, provided it is not under any other surveillance measure.

Compliance Requirements

• NSE Members must ensure 100% margin is collected on all open positions in ESM-listed securities as of May 11, 2026, and on all new positions from May 12, 2026
• Members must note the segment migration from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) for Stage I securities
• For Stage II securities (AKSHOPTFBR, EMAMIREAL), trading must be conducted under Periodic Call Auction with a 2% price band
• Members may refer to the ESM FAQ at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm for full framework details
• Queries may be directed to surveillance@nse.co.in

Important Dates

Impact Assessment

High impact on the 10 affected stocks. The mandatory shift to Trade-for-Trade settlement eliminates netting benefits and requires full upfront funds/securities delivery, significantly reducing trading flexibility. The 100% margin requirement effectively doubles capital requirements for positions in these scrips, likely reducing institutional and retail participation. Stage II securities (AKSHOPTFBR, EMAMIREAL) face additional restrictions via a 2% daily price band under Periodic Call Auction, severely limiting price discovery and liquidity. Overall, these measures are expected to suppress volumes and increase bid-ask spreads in affected securities. Traders and investors holding positions in any of the 10 listed stocks should review their margin sufficiency and settlement obligations before May 11, 2026.