Description

BSE updates Enhanced Surveillance Measure framework with new securities additions and stage movements effective August 18, 2025.

Summary

BSE has updated its Enhanced Surveillance Measure (ESM) framework effective August 18, 2025. The circular includes 5 new securities being added to ESM, 1 security moving to higher stage ESM, and 47 securities moving to lower stage ESM. The ESM framework is a risk management tool that places additional restrictions and monitoring on securities exhibiting unusual price movements or trading patterns.

Key Points

  • 5 new securities added to ESM framework including Ashutosh Paper Mills Ltd, Avi Products India Ltd, Inter Globe Finance Ltd, NDL Ventures Ltd, and Polymac Thermoformers Ltd
  • R.S. Software (India) Ltd will move to higher stage ESM with increased restrictions
  • 47 securities will move to lower stage ESM with reduced surveillance measures
  • Changes effective from August 18, 2025
  • Framework includes both main board and SME securities
  • Some securities marked with special annotations for NSE alignment and SME classification

Regulatory Changes

The Enhanced Surveillance Measure framework applies additional trading restrictions and monitoring requirements to securities that exhibit unusual price movements, high volatility, or other risk indicators. Securities under ESM may face:

  • Additional margin requirements
  • Reduced position limits
  • Enhanced disclosure requirements
  • Periodic review for continuation or removal from the framework

Compliance Requirements

  • Trading members must comply with enhanced margin and position limit requirements for affected securities
  • Investors should be aware of additional restrictions when trading ESM securities
  • Regular monitoring and compliance with ESM framework guidelines
  • Adherence to enhanced disclosure norms where applicable

Important Dates

  • August 18, 2025: Effective date for all ESM framework changes
  • All new additions, stage movements, and continued surveillance measures take effect from this date

Impact Assessment

Market Impact: Medium - affects trading conditions for 53 securities across various market segments including both main board and SME securities. The framework aims to protect investors while maintaining market integrity.

Operational Impact: Trading members and investors need to adjust their risk management and trading strategies for affected securities. Enhanced surveillance may lead to improved price discovery and reduced manipulation risks for the listed securities.

Impact Justification

Affects trading conditions for multiple securities under surveillance framework with restrictions on trading activities