What Does ESM Stage 1 Mean?

ESM Stage 1 (Enhanced Surveillance Measure Stage 1) means a stock shows high price volatility and positive trends, triggering tighter trading rules like a 100% margin, Trade-for-Trade settlement (no intraday), and a strict 5% price band (or 2% if already restricted) to curb speculation, requiring it to stay in Stage 1 for at least 90 days.
Key Characteristics of ESM Stage 1:
Entry Trigger: High price volatility (e.g., 3, 6, or 12-month High-Low variation) and/or consistent closing price gains.
Margin: 100% margin requirement, meaning full payment for the stock.
Settlement: Trade-for-Trade (T2T) basis, allowing only delivery-based trades (no intraday).
Price Band: A 5% upper/lower circuit limit (unless already in a 2% band).
Duration: A minimum stay of 90 calendar days.