National Stock Exchange of India
Circular
Department: SURVEILLANCE
Download Ref No: NSE/SURV/64402 Date: October 04, 2024
Circular Ref. No: 854/2024
To All NSE Members
Sub: Cautionary Messages on Trading Terminal - Update
This is in continuation to Exchange circular(s) NSE/SURV/39327, NSE/SURV/45768, NSE/SURV/53054,
NSE/SURV/54513, NSE/SURV/55831, NSE/SURV/57110, NSE/SURV/57778, NSE/SURV/60281,
NSE/SURV/60574 and NSE/SURV/63563 dated November 02, 2018, September 21, 2020, July 22,
2022, November 18, 2022, June 14, 2023, July 31, 2023, January 16, 2024, February 6, 2024 and
August 23, 2024 respectively.
1. Exchange vide circular no. NSE/SURV/60281 dated January 16, 2024 informed the Trading
Members (TMs) about introduction of a new file REG_INDDDMMYY.csv for standardization of the
format across Exchanges and facilitating dissemination of scrip specific cautionary messages
(single/multiple) on trading terminals at the time of order entry. Exchange provides the
REG_INDDDMMYY.csv file to identify securities which are under Surveillance and Other actions and
is made available daily on the Exchange website at path [Link]
As of now TMs are required to provide the following pop-up alert messages which need to be
disseminated on non-NEAT front end including IBT, STWT, CTCL etc. All these messages are
mandatory wherever applicable for a scrip in CM segment.
Sr. No. Broad Criteria Pop-up Alert Message
1.1. Graded Surveillance Measure 1.1.1. Scrips in GSM
(GSM) 1.1.2. Stage 1 GSM scrip
1.1.3. Stage 2 GSM scrip
1.1.4. Stage 3 GSM scrip
1.1.5. Stage 4 GSM scrip
1.1.6. Stage 6 GSM scrip
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Sr. No. Broad Criteria Pop-up Alert Message
1.2. Long Term Additional 1.2.1. Stage 1 Long Term ASM scrip
Surveillance Measure (Long 1.2.2. Stage 2 Long Term ASM scrip
Term ASM) 1.2.3. Stage 3 Long Term ASM scrip
1.2.4. Stage 4 Long Term ASM scrip
1.3. Short Term Additional 1.3.1. Stage 1 Short Term ASM scrip
Surveillance Measure (Short 1.3.2. Stage 2 Short Term ASM scrip
Term ASM)
1.4. Enhanced Surveillance Measure 1.4.1. Stage 1 ESM Scrip
(ESM) 1.4.2. Stage 2 ESM scrip
1.5. Unsolicited SMS 1.5.1. Under SMS – stock under ‘Current Watchlist’
1.5.2. Under SMS – stock under ‘For Information’ List
1.6. Insolvency Resolution Process 1.6.1. Identified as ‘Receipt of Corporate Announcement /
(IRP) Disclosure from the Company’
1.6.2. IBC stage 1
1.6.3. IBC Stage 2
1.7. Inter Credit Agreement (ICA) 1.7.1. Identified under ICA
1.7.2. Identified under Surveillance Measure for ICA
1.8. Default 1.8.1. Identified under disclosure of Default.
1.8.2. Identified under Additional Surveillance Measure for
disclosure of Default.
1.9. Pledge Identified under Surveillance measure in respect of companies
with high promoter pledge.
1.10. Total Pledge Identified under Regulatory measure on companies as per
pledge holding of both promoter as well as non-promoter
1.11. Social Media Platforms Under Social Media Platforms – stocks under ‘Surveillance
Measure list’
1.12. Loss making The company has been loss making for at least the last 8
quarters for main board and last 2 years for SME companies on
consolidated basis.
1.13. The Overall encumbered share Encumbrance of Promoters/ promoter group shareholding of at
in the scrip is more than 50 least 50% of the total capital
Percent.
1.14. Under BZ/SZ Series The company is in BZ/SZ series due to non-compliance with
SEBI SOP Circular
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Sr. No. Broad Criteria Pop-up Alert Message
1.15. Company has failed to pay The company has failed to pay Annual listing fee.
Annual listing fee
1.16. Derivative contracts in the scrip The security is scheduled to move out of derivatives. No fresh
to be moved out of F and O far month contracts shall be issued.
1.17. Add-on PB Identified under Add-on Price Band
1.18. Security is in BAN for Trade on Security is in ‘BAN period’ in F&O
account of breach of 95% of
MWPL (i.e.,20% of Non-
promoter holding) *
* Details regarding securities in Ban Period is not available in Regulatory Indicator file and members to use
‘fo_secban_DDMMYYYY.csv’ file from extranet path: \FAOFTP\FaoCommon\Limit Files (as per Annexure-2, Point B of
circular NSE/FAOP/37975 dated June 08, 2018).
In case multiple messages are eligible to be displayed, it is mandatory for the TMs to provide all
eligible messages in the pop-up.
2. Exchange vide circular no. NSE/SURV/63563 dated August 23, 2024 directed the Trading Members
(TMs) to inform investors about scrips under gross settlement (Trade for Trade) by developing a
cautionary message to their clients based on the series (BE/ BZ/ ST or SZ) populated in the
REG_INDDDMMYY.csv file.
Sr. No. Broad Criteria Pop-up Alert Message
2.1. Trade for Trade (TFT) Security is under Gross settlement (Trade for Trade)
This is in addition to the other pop-up messages mentioned at point no.1 above.
3. As per Joint Surveillance Meeting of Exchanges and SEBI held on October 4, 2024, the
abovementioned cautionary messages pop-up alerts messages were reviewed, and it was decided
to:
3.1. Introduce additional mandatory pop-up alert messages applicable for all scrips
3.2. Introduce additional mandatory pop-up alert messages applicable for all SME scrips
3.3. Introduce additional pop-up alert messages applicable for some scrips based on close-to-
close Price Variation and high/low price variations. These thresholds are similar to
thresholds in existing ASM/ESM criteria
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4. Pursuant to the above additions of pop-up alert messages, the list of mandatory pop up alert
messages is as under:
4.1. List of Pop-up alert messages which are mandatory for ALL scrips wherever applicable
based on various price variation criteria.
Sr. No. Broad Criteria Pop-up Alert Message
4.1.1. Graded Surveillance Measure [Link]. Scrips in GSM
(GSM) [Link]. Stage 1 GSM scrip
[Link]. Stage 2 GSM scrip
[Link]. Stage 3 GSM scrip
[Link]. Stage 4 GSM scrip
[Link]. Stage 6 GSM scrip
4.1.2. Long Term Additional [Link]. Stage 1 Long Term ASM scrip
Surveillance Measure (Long [Link]. Stage 2 Long Term ASM scrip
Term ASM) [Link]. Stage 3 Long Term ASM scrip
[Link]. Stage 4 Long Term ASM scrip
4.1.3. Short Term Additional [Link]. Stage 1 Short Term ASM scrip
Surveillance Measure (Short [Link]. Stage 2 Short Term ASM scrip
Term ASM)
4.1.4. Enhanced Surveillance Measure [Link]. Stage 1 ESM Scrip
(ESM) [Link]. Stage 2 ESM scrip
4.1.5. Unsolicited SMS [Link]. Under SMS – stock under ‘Current Watchlist’
[Link]. Under SMS – stock under ‘For Information’ List
4.1.6. Insolvency Resolution Process [Link]. Identified as ‘Receipt of Corporate
(IRP) Announcement / Disclosure from the Company’
[Link]. IBC stage 1
[Link]. IBC Stage 2
4.1.7. Inter Credit Agreement (ICA) [Link]. Identified under ICA
[Link]. Identified under Surveillance Measure for ICA
4.1.8. Default [Link]. Identified under disclosure of Default.
[Link]. Identified under Additional Surveillance Measure
for disclosure of Default.
4.1.9. Pledge Identified under Surveillance measure in respect of
companies with high promoter pledge.
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Sr. No. Broad Criteria Pop-up Alert Message
4.1.10. Total Pledge Identified under Regulatory measure on companies as
per pledge holding of both promoter as well as non-
promoter
4.1.11. Social Media Platforms Under Social Media Platforms – stocks under
‘Surveillance Measure list’
4.1.12. Add-on PB Identified under Add-on Price Band
4.1.13. Trade for Trade (TFT) Security is under Gross settlement (Trade for Trade)
4.2. List of Pop-up alert messages which are mandatory for ALL scrips wherever applicable
based on criteria other than price variation.
Sr. No. Broad Criteria Pop-up Alert Message
4.2.1. Loss making The company has been loss making for at least the last 8
quarters for main board and last 2 years for SME
companies on consolidated basis.
4.2.2. The Overall encumbered share Encumbrance of Promoters/ promoter group
in the scrip is more than 50 shareholding of at least 50% of the total capital
Percent.
4.2.3. Under BZ/SZ Series The company is in BZ/SZ series due to non-compliance
with SEBI SOP Circular
4.2.4. Company has failed to pay The company has failed to pay Annual listing fee.
Annual listing fee
4.2.5. Derivative contracts in the scrip The security is scheduled to move out of derivatives. No
to be moved out of F and O fresh far month contracts shall be issued.
4.2.6. Security is in BAN for Trade on Security is in ‘BAN period’ in F&O
account of breach of 95% of
MWPL (i.e.,20% of Non-
promoter holding) *
4.3. List of additional Pop-up alert messages which are mandatory for ALL scrips wherever
applicable.
Sr. No. Broad Criteria Pop-up Alert Message
4.3.1. Scrip PE is greater than 50 (4 The scrip PE is greater than 50 for previous 4 trailing
trailing quarters) quarters
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Sr. No. Broad Criteria Pop-up Alert Message
4.3.2. EPS in the scrip is zero (4 EPS based on previous 4 trailing quarters in the scrip is
trailing quarters) zero
4.3.3. Less than 100 unique PAN Average daily number of unique Clients/PAN traded in
traded in previous 30 days the scrip in previous 30 days is less than 100
4.4. List of additional Pop-up alert messages which are mandatory for ALL SME scrips wherever
applicable.
Sr. No. Broad Criteria Pop-up Alert Message
4.4.1. Mandatory Market making Mandatory Market making period in this scrip is over,
period in SME scrip is over exit may be difficult.
4.4.2. SME scrip is not regularly traded The scrip is not regularly traded, and exit may be
difficult.
4.5. Additionally, Top 3 (based on price movement per day) (Top 2 from close-to-close price
variation and Top from High-low variation list) from the below list of pop-up alert messages
will be applicable for all scrips for which alert messages mentioned in para 4.1 is not
appliable.
Sr. No. Broad Criteria Pop-up Alert Message
4.5.1. Close to Close price movement greater Close to Close price movement was greater
than 25% in previous 5 trading days than 25% in previous 5 trading days
4.5.2. Close to Close price movement greater Close to Close price movement was greater
than 40% in previous 15 trading days than 40% in previous 15 trading days
4.5.3. Close to Close price movement greater Close to Close price movement was greater
than 100% in previous 60 trading Days than 100% in previous 60 trading Days
4.5.4. Close to Close price movement greater Close to Close price movement was greater
than 25% in previous 15 Days than 25% in previous 15 Days
4.5.5. Close to Close price movement greater Close to Close price movement was greater
than 50% in previous 1 month than 50% in previous 1 month
4.5.6. Close to Close price movement greater Close to Close price movement was greater
than 90% in previous 3 months than 90% in previous 3 months
4.5.7. Close to Close price movement greater Close to Close price movement was greater
than 25% in previous 1 month than 25% in previous 1 month
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Sr. No. Broad Criteria Pop-up Alert Message
4.5.8. Close to Close price movement greater Close to Close price movement was greater
than 50% in previous 3 months than 50% in previous 3 months
4.5.9. Close to Close price movement greater Close to Close price movement was greater
than 200% in previous 365 Days than 200% in previous 365 Days
4.5.10. Close to Close price movement greater Close to Close price movement was greater
than 75% in previous 6 months than 75% in previous 6 months
4.5.11. Close to Close price movement greater Close to Close price movement was greater
than 100% in previous 365 Days than 100% in previous 365 Days
4.5.12. High low price variation greater than 75% High low price variation was greater than
in previous 1 month 75% in previous 1 month
4.5.13. High low price variation greater than High low price variation was greater than
150% in previous 3 months 150% in previous 3 months
4.5.14. High low price variation greater than 75% High low price variation was greater than
in previous 3 months 75% in previous 3 months
4.5.15. High low price variation greater than High low price variation was greater than
300% in previous 365 Days 300% in previous 365 Days
4.5.16. High low price variation greater than High low price variation was greater than
100% in previous 6 months 100% in previous 6 months
4.5.17. High low price variation greater than High low price variation was greater than
200% in previous 365 Days 200% in previous 365 Days
4.5.18. High low price variation greater than High low price variation was greater than
150% in previous 12 months 150% in previous 12 months
Exchange shall update the file structure to accommodate the aforesaid additional messages and
provide the relevant indicators in the REG_INDDDMMYY.csv file.
In order to inform investors about these additional alert messages, trading members are directed to
develop a cautionary message to their clients based on the additional fields populated in the
REG_INDDDMMYY.csv file.
Trading Members are required to develop a functionality on their non-NEAT front end including IBT,
STWT, CTCL etc., whereby any person while placing an order in a security for which the cautionary
indicators are applicable (as per the REG_INDDDMMYY.csv file and ‘fo_secban_DDMMYYYY.csv’), gets
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the following message so that the person placing the order is aware of such single/multiple actions on
the scrip before placing the order. The message shall be as under:
“Security is under - , would you like to continue?” Yes / No.
For example: If a security qualifies for a combination of multiple actions, e.g. Qualifies for ‘GSM-0’, ‘ESM-
1’, ‘Failed to pay Annual listing fee’ & ‘BAN period’ in F&O’, then the pop-up message while placing an
order for that security shall display all the 3 messages. In this case, sample message should be “Security
is under - GSM-0, ESM-1, Failed to pay Annual listing fee & BAN period in F&O, would you like to
continue?” Yes / No. This is applicable for any combination of mandatory pop up alert message indicated
in para 4.
The functionality will provide the option for the person placing the order to either select “Yes” or “No”.
The order shall be sent to the Exchange only if option “Yes” is selected.
Trading members may please note that the aforesaid verbatim of the pop-up message should
mandatorily be included in the pop-up message on the trading front-end.
Trading Members are also required to maintain a LOG of all such displays per scrip and the options
selected by the investor on the order entry screen. Management of the TM needs to provide such LOGs
to the Board of the Trading Member and must satisfy them that all alerts were displayed at the time of
order entry and the option chosen by the client on the system was also recorded.
The System Auditor should also check in the periodic submission, whether the above functionality was
properly deployed.
Sample format of the revised file (REG_INDDDMMYY.csv) along with the file structure will be provided
vide a separate circular.
The file (REG_INDDDMMYY.csv) shall continue to be made available daily on the Exchange website at
path [Link]
Further it is reiterated that the aforesaid feature is mandatory for trading members with retail clients.
Trading members are requested to build the requisite functionality and comply with the circular
preferably by December 10, 2024 and mandatorily by January 10, 2025.
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In case of any further queries, you may write to us at surveillance@[Link].
For National Stock Exchange of India Limited
Binoy Yohannan
Associate Vice president
Surveillance