[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  RedboxGlobal India [@REDBOXINDIA](/creator/twitter/REDBOXINDIA) on x 367.8K followers Created: 2025-07-25 17:03:17 UTC NSE’s Revised ESM Framework – Explained Simply for Retail Investors 🔍 What is ESM (Enhanced Surveillance Measure)? It’s a safety system by NSE to track and control stocks that show abnormal price movement, especially for small companies (market cap < ₹1,000 crore). The idea is to protect retail investors from sudden price spikes and potential manipulation. ⸻ 📌 Stage 1: When a stock gets shortlisted? A stock may enter Stage X if any ONE of the below two conditions is met: ✅ Option 1: High–Low Price Swing •If the stock’s high and low price difference in the last 3, 6, or XX months is very large, beyond a certain limit. •For example: •Over XX% jump/drop in X months •Over XXX% in X months •Over XXX% in XX months AND •The stock must also show an upward trend in closing prices in the last X months. ✅ Option 2: Close-to-Close Price Movement •If the stock’s closing price jumps around a lot in 3, 6, or XX months, more than the normal level. •For example: •Over XX% move in X months •Over XX% in X months •Over XXX% in XX months 📌 Note: Stocks that have derivatives (F&O) are not included in this process. ⸻ ⚠️ What happens in Stage 1? If a stock enters Stage 1: •🔒 XXX% margin required (You must pay full amount upfront—no leverage). •🔁 Trade-for-trade settlement starts (You can only buy or sell whole shares—no intraday or speculative trades). •📉 Price movement is restricted within: •5% band •Or X% if the stock is already in a X% band ⸻ 🚨 Stage 2: Even Stricter Rules A stock moves to Stage X if it remains in Stage X and also: •Shows wild price swings (over XX% up or down) for X trading days in a row OR •Meets a similar condition on a monthly basis ⸻ 🔒 What happens in Stage 2? •Price movement is restricted to X% •Trade-for-trade settlement continues •100% margin still required •All trades must be done via Periodic Call Auction (a special order-matching method with limited sessions) ⸻ 💡 Why is this important for you? If a stock enters ESM: •Be cautious—this usually means price volatility is too high •Liquidity may be low (harder to buy/sell) •Not ideal for short-term or intraday traders •NSE is flagging it for extra surveillance to protect investors XXXXXX engagements  **Related Topics** [spikes](/topic/spikes) [stocks](/topic/stocks) [india](/topic/india) [Post Link](https://x.com/REDBOXINDIA/status/1948791176284570053)
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RedboxGlobal India @REDBOXINDIA on x 367.8K followers
Created: 2025-07-25 17:03:17 UTC
NSE’s Revised ESM Framework – Explained Simply for Retail Investors
🔍 What is ESM (Enhanced Surveillance Measure)?
It’s a safety system by NSE to track and control stocks that show abnormal price movement, especially for small companies (market cap < ₹1,000 crore). The idea is to protect retail investors from sudden price spikes and potential manipulation.
⸻
📌 Stage 1: When a stock gets shortlisted?
A stock may enter Stage X if any ONE of the below two conditions is met:
✅ Option 1: High–Low Price Swing •If the stock’s high and low price difference in the last 3, 6, or XX months is very large, beyond a certain limit. •For example: •Over XX% jump/drop in X months •Over XXX% in X months •Over XXX% in XX months AND •The stock must also show an upward trend in closing prices in the last X months.
✅ Option 2: Close-to-Close Price Movement •If the stock’s closing price jumps around a lot in 3, 6, or XX months, more than the normal level. •For example: •Over XX% move in X months •Over XX% in X months •Over XXX% in XX months
📌 Note: Stocks that have derivatives (F&O) are not included in this process.
⸻
⚠️ What happens in Stage 1?
If a stock enters Stage 1: •🔒 XXX% margin required (You must pay full amount upfront—no leverage). •🔁 Trade-for-trade settlement starts (You can only buy or sell whole shares—no intraday or speculative trades). •📉 Price movement is restricted within: •5% band •Or X% if the stock is already in a X% band
⸻
🚨 Stage 2: Even Stricter Rules
A stock moves to Stage X if it remains in Stage X and also: •Shows wild price swings (over XX% up or down) for X trading days in a row OR •Meets a similar condition on a monthly basis
⸻
🔒 What happens in Stage 2? •Price movement is restricted to X% •Trade-for-trade settlement continues •100% margin still required •All trades must be done via Periodic Call Auction (a special order-matching method with limited sessions)
⸻
💡 Why is this important for you?
If a stock enters ESM: •Be cautious—this usually means price volatility is too high •Liquidity may be low (harder to buy/sell) •Not ideal for short-term or intraday traders •NSE is flagging it for extra surveillance to protect investors
XXXXXX engagements
