NSE’s Surveillance department has issued Circular 305/2026 under the Enhanced Surveillance Measure (ESM) framework, shortlisting 11 securities for inclusion in ESM Stage I and moving 2 securities from Stage I to Stage II, effective April 29–30, 2026. All affected securities will be shifted from Rolling Settlement (EQ/SM series) to Trade-for-Trade (BE/ST series) and will attract a minimum 100% margin requirement.

Key Points

• 11 securities newly added to ESM Stage I effective April 29, 2026, with 100% margin applicable from April 30, 2026
• 2 securities (GLFL, S&SPOWER) moved from ESM Stage I to Stage II effective April 29, 2026
• No securities moving from Stage II back to Stage I
• All ESM securities shifted from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST) w.e.f. April 30, 2026
• Stage II securities will trade under Periodic Call Auction with a 2% price band w.e.f. April 29, 2026
• ESM framework operates in conjunction with 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

Securities newly added to ESM Stage I (effective April 29, 2026, margin from April 30, 2026):

Securities moved from ESM Stage I to Stage II (effective April 29, 2026):

Securities moved from ESM Stage II to Stage I: Nil

Compliance Requirements

• Brokers/Members: Must apply a minimum 100% margin on all open positions as on April 29, 2026, and on new positions created from April 30, 2026 for ESM Stage I securities
• Market Participants: Must note that ESM Stage II securities (GLFL, S&SPOWER) will only be tradable under Periodic Call Auction with a 2% price band from April 29, 2026
• Settlement: All ESM securities must be settled on a Trade-for-Trade basis under BE/ST series from April 30, 2026; netting of positions is not permitted
• For queries, contact: surveillance@nse.co.in

Important Dates

• April 29, 2026: ESM Stage I and Stage II inclusions become effective; Stage II securities shift to Periodic Call Auction with 2% price band
• April 29, 2026: 100% margin applicable on all open positions as of this date
• April 30, 2026: All ESM securities migrate from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) series; 100% margin applies on new positions

Impact Assessment

This circular has a high market impact across 13 securities:

• Liquidity Impact: Migration to Trade-for-Trade eliminates intraday netting, sharply reducing liquidity and increasing effective trading costs for all 13 securities
• Cost Impact: 100% margin requirement doubles the capital required to hold positions in ESM Stage I securities, likely triggering forced liquidation by margin-constrained traders
• Stage II Severity: GLFL and S&SPOWER face the most restrictive conditions — a 2% daily price band under Periodic Call Auction significantly limits price discovery and exit options
• Investor Risk: Retail investors holding these securities may find it difficult to exit positions quickly given reduced liquidity and price band constraints
• Surveillance Signal: Inclusion under ESM reflects concerns around price volatility, low liquidity, or other market surveillance criteria — investors should exercise caution