Description

BSE updates Enhanced Surveillance Measure framework with new securities additions and stage movements effective August 21, 2025.

Summary

BSE has updated its Enhanced Surveillance Measure (ESM) framework effective August 21, 2025, adding new securities and moving existing ones to different ESM stages. Two new securities have been added to ESM Stage I, while 12 securities will move to higher ESM stages. No securities are moving out of the ESM framework or to lower stages.

Key Points

  • 2 new securities added to Enhanced Surveillance Measure Stage I
  • 12 existing securities moved to higher ESM stages
  • No securities removed from ESM framework
  • No securities moved to lower ESM stages
  • Changes effective from August 21, 2025
  • Consolidated list includes over 22 securities across different ESM stages

Regulatory Changes

The ESM framework continues to monitor securities with higher risk profiles through staged surveillance measures. Securities in ESM are subject to additional monitoring and may have trading restrictions or margin requirements.

Compliance Requirements

  • Market participants must be aware of ESM classifications for affected securities
  • Enhanced due diligence required for transactions in ESM securities
  • Adherence to any additional margin or trading restrictions as applicable
  • Regular monitoring of ESM stage changes for portfolio securities

Important Dates

  • August 21, 2025: Effective date for all ESM framework changes
  • All new additions and stage movements become applicable from this date

Impact Assessment

The addition of new securities to ESM and movement of existing securities to higher stages indicates increased regulatory scrutiny. This may result in reduced liquidity, higher margins, and additional compliance requirements for these securities. Market participants should exercise enhanced caution when dealing with ESM securities and ensure adequate risk management measures.

Impact Justification

Regular surveillance framework updates affecting multiple securities with trading restrictions