Description

BSE announces changes to Enhanced Surveillance Measure framework with new securities additions, stage movements, and removals effective July 28, 2025.

Summary

BSE has updated its Enhanced Surveillance Measure (ESM) framework effective July 28, 2025. The circular announces three categories of changes: 6 new securities being added to ESM, 6 securities moving to higher ESM stages, and 36 securities moving to lower ESM stages. Additionally, some securities are being removed from the ESM framework entirely.

Key Points

  • 6 new securities shortlisted for Enhanced Surveillance Measure framework
  • 6 existing ESM securities moved to higher surveillance stages
  • 36 existing ESM securities moved to lower surveillance stages
  • Securities moving out of ESM framework (list partially provided in annexure)
  • Changes effective from July 28, 2025
  • Mix of main board and SME scrips affected

Regulatory Changes

The Enhanced Surveillance Measure framework categorizes securities based on risk assessment and market behavior. Securities under ESM face additional trading restrictions and monitoring mechanisms. The framework operates in stages, with higher stages indicating increased surveillance and stricter trading conditions.

Compliance Requirements

  • Market participants must be aware of the new ESM categorizations
  • Trading in ESM securities subject to additional surveillance measures
  • Investors should review their portfolios for affected securities
  • Brokers and trading members must implement appropriate risk management for ESM securities

Important Dates

  • Effective Date: July 28, 2025 - All ESM framework changes become applicable

Impact Assessment

The ESM framework changes will affect trading patterns and liquidity for the listed securities. Securities moving to higher ESM stages may face reduced trading volumes due to increased restrictions, while those moving to lower stages or exiting the framework may see improved liquidity. Investors holding positions in affected securities should reassess their risk exposure and trading strategies. The framework serves as a protective mechanism for market integrity but may impact short-term trading opportunities in the specified securities.

Impact Justification

Affects multiple securities with trading restrictions and surveillance measures, impacting investor decisions and market liquidity for listed stocks