NSE’s Surveillance Department (Circular Ref. No: 292/2026, Download Ref No: NSE/SURV/73871) has announced the inclusion of 11 securities into Enhanced Surveillance Measure (ESM) Stage I and the movement of 1 security (LLOYDS) from Stage I to Stage II. These securities will attract a minimum 100% margin requirement and will be shifted from Rolling Settlement (EQ/SM series) to Trade-for-Trade settlement (BE/ST series) effective April 27, 2026.

Key Points

• 11 securities added to ESM Stage I effective April 27, 2026, attracting 100% minimum margin on all open and new positions
• LLOYDS (Lloyds Luxuries Limited) elevated from ESM Stage I to Stage II effective April 24, 2026
• Securities under Stage II will be placed under Trade for Trade with a 2% price band under Periodic Call Auction
• No securities are moving from Stage II back to Stage I in this update
• ESM framework operates in conjunction with all other prevailing surveillance measures imposed by the exchanges
• Shortlisting under ESM is based solely on market surveillance criteria and is not an adverse action against the companies

Regulatory Changes

• New ESM Stage I inclusions (w.e.f. April 27, 2026): AMBEY (Ambey Laboratories Limited), DUGLOBAL (DUDIGITAL GLOBAL LIMITED), KHAICHEM (Khaitan Chemicals & Fertilizers Limited), MANAKSTEEL (Manaksia Steels Limited), NAGREEKCAP (Nagreeka Capital & Infrastructure Limited), NINSYS (NINtec Systems Limited), POSITRON (Positron Energy Limited), SEJALLTD (Sejal Glass Limited), SHEKHAWATI (Shekhawati Industries Limited), SHRIKANHA (Shri Kanha Stainless Limited), SHYAMTEL (Shyam Telecom Limited)
• Stage I to Stage II promotion (w.e.f. April 24, 2026): LLOYDS (Lloyds Luxuries Limited, ISIN: INE0DTQ01028) — placed under Trade for Trade with 2% price band under Periodic Call Auction
• Stage II to Stage I demotion: Nil
• All Stage I inclusions will shift from EQ/SM series to BE/ST series (Rolling Settlement to Trade-for-Trade)

Compliance Requirements

• Brokers/Members: Must ensure a minimum 100% margin is collected on all open positions as on April 24, 2026, and on all new positions created from April 27, 2026, for the 11 newly added ESM Stage I securities
• Members must adhere to Trade-for-Trade settlement rules for securities shifted to BE/ST series
• Members handling LLOYDS must comply with the 2% price band under Periodic Call Auction applicable from April 24, 2026
• Members may refer to FAQs at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm for further details
• Queries can be directed to surveillance@nse.co.in

Important Dates

• April 24, 2026: LLOYDS moves to ESM Stage II; 100% margin applicable on open positions as of this date for newly added Stage I securities; Stage II Periodic Call Auction with 2% price band effective
• April 27, 2026: 11 new ESM Stage I securities shifted from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade); 100% minimum margin applicable on new positions from this date

Impact Assessment

Traders and investors holding positions in the 12 affected securities face significant operational and financial impacts. The 100% margin requirement effectively doubles the capital needed to hold positions, making leveraged trading impossible for these stocks. The shift to Trade-for-Trade settlement eliminates netting benefits and requires full upfront payment for purchases, reducing liquidity. LLOYDS faces additional restrictions under Periodic Call Auction with a tight 2% price band, severely limiting intraday price movement. Market participants should reassess their exposure to these securities ahead of the April 24 and April 27 effective dates. The ESM framework is a regulatory tool designed to protect investors from unusual price and volume movements; inclusion signals that these securities have exhibited surveillance-trigger behavior.