NSE ESM list May 18 2026: Kanoria Chemicals, Nakoda Group, Shera Energy, Smartlink Holdings and Vivid Electromech added to ESM Stage I; 8 stocks exit ESM framework including De Neers Tools and Precot Limited
The National Stock Exchange of India has updated its Enhanced Surveillance Measure framework effective May 18, 2026, adding five securities to ESM Stage I, escalating one stock from Stage I to Stage II, moving eleven stocks down from Stage II to Stage I, and removing eight securities from the ESM framework entirely.
New additions to ESM Stage I from May 18, 2026
Five securities have been freshly shortlisted under ESM Stage I effective May 18: Kanoria Chemicals & Industries Limited (KANORCHEM), Nakoda Group of Industries Limited (NGIL), Shera Energy Limited (SHERA), Smartlink Holdings Limited (SMARTLINK), and Vivid Electromech Limited (VIVDEL). All five will move from the EQ or SM segment to the BE or ST trade-for-trade settlement segment effective May 19, 2026, meaning that each buy transaction in these stocks will require upfront payment and each sell will require upfront delivery — eliminating the ability to square off intraday positions.
Escalated from ESM Stage I to Stage II
Avatar Industries Limited (AVATAR) has been moved from ESM Stage I to ESM Stage II effective May 18. Stage II carries more stringent surveillance conditions, including additional price band restrictions and enhanced margin requirements, reflecting the regulator’s heightened concern about the stock’s trading behaviour.
Moved down from ESM Stage II to Stage I
Eleven stocks have been moved from the more restrictive Stage II back to Stage I effective May 18, indicating partial improvement in their surveillance parameters: Capital Trust Limited (CAPTRUST), JITF Infralogistics Limited (JITFINFRA), Kalana Ispat Limited (KALANA), Kody Technolab Limited (KODYTECH), Mangalam Drugs and Organics Limited (MANGALAM), Madhav Copper Limited (MCL), Polysil Irrigation Systems Limited (POLYSIL), Sadbhav Engineering Limited (SADBHAV), Surani Steel Tubes Limited (SURANI), Tijaria Polypipes Limited (TIJARIA), and Visaman Global Sales Limited (VISAMN).
Removed from ESM framework
Eight securities have been excluded from the ESM framework effective May 18: ABM International Limited (ABMINTLLTD), De Neers Tools Limited (DENEERS), Graphisads Limited (GRAPHISAD), Medistep Healthcare Limited (MEDISTEP), Neptune Petrochemicals Limited (NEPTUNE), Niraj Ispat Industries Limited (NIRAJISPAT), Paras Petrofils Limited (PARASPETRO), and Precot Limited (PRECOT). Of these, De Neers Tools, Graphisads, Medistep Healthcare, Neptune Petrochemicals, and Precot will move back from BE/ST to EQ/SM settlement effective May 18, while ABM International, Niraj Ispat Industries, and Paras Petrofils will make the same move effective May 19, pursuant to NSE circular NSE/SURV/74226 issued May 14, 2026, related to the TFT Quarterly framework action.
What ESM means for investors
The NSE’s Enhanced Surveillance Measure framework is applied to securities that exhibit abnormal price or volume movements, low public float, high concentration of trading, or other indicators of potential manipulation or speculative excess. Securities placed under ESM face trade-for-trade settlement — where each transaction must be settled on a gross basis without netting — along with additional surveillance margins and, in Stage II, additional price band restrictions. Investors holding or trading ESM-listed securities should note that normal intraday trading is not available in these stocks, and that the regulatory action signals heightened risk associated with these securities.
The consolidated ESM list as of May 18, 2026 includes 23 securities in Stage II and a significantly larger number in Stage I across sectors including chemicals, infrastructure, textiles, pharmaceuticals, and financial services.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions. ESM classification by NSE is a surveillance measure and does not constitute a finding of wrongdoing.