Description

BSE updates Enhanced Surveillance Measure framework with securities moving into, within, and out of ESM stages effective August 26, 2025.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective August 26, 2025. Three new securities are being added to ESM Stage I, three existing securities are moving to higher ESM stages, and no securities are being removed from the framework.

Key Points

  • 3 new securities added to ESM Stage I: Bangalore Fort Farms Ltd, Fredun Pharmaceuticals Ltd, Fundviser Capital (India) Ltd
  • 3 securities moving to higher ESM stages: Bemco Hydraulics Ltd, Kesar Terminals & Infrastructure Ltd, Praxis Home Retail Ltd
  • No securities moving to lower ESM stages or exiting the framework
  • Consolidated list shows 29+ securities currently under various ESM stages
  • Framework includes both main board and SME securities

Regulatory Changes

ESM framework adjustments with securities being categorized into different surveillance stages based on market behavior and compliance parameters. Stage movements indicate escalation or de-escalation of surveillance measures.

Compliance Requirements

  • Enhanced disclosure requirements for securities under ESM
  • Additional margin requirements may apply
  • Stricter position limits and monitoring
  • Regular compliance reporting for affected companies

Important Dates

  • Effective Date: August 26, 2025
  • All ESM stage changes become applicable from market opening on this date

Impact Assessment

Medium impact on affected securities with potential for:

  • Increased trading costs due to higher margins
  • Reduced liquidity due to enhanced surveillance
  • Greater scrutiny from exchanges and regulators
  • Possible impact on institutional participation in these securities

Impact Justification

Affects trading conditions for specific securities under enhanced surveillance with stage movements