NSE’s Surveillance department has issued Circular 281/2026 placing 13 securities under Enhanced Surveillance Measure (ESM) Stage I effective April 21-22, 2026. These securities will attract a minimum 100% margin on all open and new positions and will be shifted from Rolling Settlement (EQ/SM series) to Trade-for-Trade settlement (BE/ST series). Additionally, Excellent Wires and Packaging Limited is being escalated from ESM Stage I to Stage II, placing it under Trade-for-Trade with a 2% price band under Periodic Call Auction.

Key Points

• 13 securities newly included in ESM Stage I w.e.f. April 21, 2026
• Minimum 100% margin applicable on all open positions as on April 21, 2026 and new positions from April 22, 2026
• All 13 Stage I inclusions shifted from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) w.e.f. April 22, 2026
• EXCELLENT (Excellent Wires and Packaging Limited) escalated from Stage I to Stage II w.e.f. April 21, 2026
• Stage II securities placed under Trade-for-Trade with 2% price band under Periodic Call Auction
• ESM framework operates alongside all other prevailing surveillance measures
• Inclusion is purely a market surveillance action and not an adverse regulatory finding against the company

Regulatory Changes

The following securities are newly included under ESM Stage I:

ESM Stage I to Stage II escalation:

This circular references earlier ESM framework 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).

Compliance Requirements

• NSE members must ensure 100% margin is collected on all open positions in the listed securities as on April 21, 2026
• Members must enforce 100% margin on all new positions in these securities from April 22, 2026 onwards
• Trading in affected securities must be routed through the Trade-for-Trade (BE/ST) segment from April 22, 2026
• For EXCELLENT (Stage II), members must adhere to the 2% price band under Periodic Call Auction from April 21, 2026
• Members should refer to ESM FAQs at https://www.nseindia.com/regulations/enhanced-surveillance-measure-esm for detailed guidance
• Queries may be directed to surveillance@nse.co.in

Important Dates

• April 20, 2026: Circular issued
• April 21, 2026: ESM Stage I inclusion and Stage I-to-Stage II escalation effective; Stage II price band restriction under Periodic Call Auction begins
• April 22, 2026: 100% margin requirement kicks in for all open positions (as on April 21) and new positions; shift from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) effective for all 13 Stage I securities

Impact Assessment

High impact on traders and investors holding positions in the 14 affected securities. The mandatory 100% margin requirement significantly increases the cost of holding or creating positions, effectively discouraging leveraged trading. The shift to Trade-for-Trade settlement eliminates netting benefits and requires full delivery obligation on every trade, reducing liquidity. Dish TV India Limited (DISHTV) and Kirloskar Electric Company Limited (KECL) are comparatively larger and more widely traded names, making their inclusion particularly notable. Excellent Wires and Packaging Limited faces further restrictions under Stage II with a tight 2% price band via Periodic Call Auction, severely limiting price discovery and tradability. Market participants with existing positions in these stocks should plan for margin calls and reduced exit liquidity.